Under F.O.B. Factory terms, when does the responsibility for goods change?

Under F.O.B. Factory terms, the responsibility for the goods changes at the time of pickup by the carrier. This means that once the goods are picked up from the factory and handed over to the carrier, the seller's responsibility for the goods ends, and the buyer assumes all responsibilities, including any risk of loss or damage during transit.

This concept is crucial in understanding shipping agreements because it clarifies the point at which liability shifts from one party to another. It emphasizes the importance for buyers to arrange for appropriate insurance while the goods are in transit, as they are liable once the goods are in the possession of the carrier.

The other options reflect different points in the sales and delivery process that do not align with the F.O.B. Factory terms. For instance, the time of delivery, time of sale, and time of payment do not trigger the shift in responsibility under F.O.B. Factory terms since the key moment is when the goods are physically handed to the carrier for transport.