F.O.B.

Also found in: Dictionary, Thesaurus, Medical, Financial, Idioms, Encyclopedia, Wikipedia.

F.O.B.

An abbreviation for free on board, which means that a vendor or consignor will deliver goods on a railroad car, truck, vessel, or other conveyance without any expense to the purchaser or consignee.

F.O.B.

‘free on board’, a special arrangement for sale of goods developed by commerce. The buyer insures for the journey as well as paying for the goods and for the freight. The seller pays the cost of having the goods put on the ship. See CIF, F.A.S., F.O.R.

Collins Dictionary of Law © W.J. Stewart, 2006

Mentioned in ?

References in periodicals archive ?

There are many, many different F.O.B. terms such as "F.O.B.

While it's the seller that normally sets F.O.B. terms, if the buyer is a major customer and has a great deal of leverage, there's nothing to stop the buyer from trying to change the F.O.B.

Getting to know F.O.B. terms

In the F.O.B. origin plan, the delivered price to the customer is a base price (e.g., price of the product) plus the exact cost of delivery.

Past research on the F.O.B. origin and the uniform delivered plans have generally assumed that one of these two plans is implemented exclusively.

Using a menu of geographic pricing plans: a theoretical investigation

When that's completed at the factory, warehouse, or some other specified location and the carrier signs the bill of lading, if terms are F.O.B. factory or F.O.B.

It's normally the seller that sets the F.O.B. terms.

Understanding terms of sale

The reason why F.O.B. Origin terms are more widely used than F.O.B.

If the terms of sale are F.O.B. Origin , Freight Prepaid and Charged (more commonly called Freight Prepaid and Add ), it means the seller pays the freight charges and then adds those charges to its invoice to the buyer.

Know the terms of sale

CITE

Site: Follow: Share:

Open / Close