Estimating Practice Exam

What defines the responsibility for unloading in an F.O.B. price quotation?

1. the contractor is responsible for unloading

2. the supplier handles all unloading

3. the owner is responsible for unloading

4. the price includes all unloading services

The correct answer is: the contractor is responsible for unloading

In an F.O.B. (Free on Board) price quotation, the responsibility for unloading is clearly defined as belonging to the contractor. This means that once the goods have been delivered to a specified location, the contractor assumes the role of unloading them. This principle is crucial in logistics and contract management, as it delineates the responsibilities of each party involved in the transaction. The nature of F.O.B. terms often specifies that the party responsible for the cost and risk during transportation will change at a particular point in the delivery process. In this context, once the goods are at the agreed-upon destination, the contractor takes over responsibilities, which typically includes unloading and related activities. This allocation of responsibility is important for accountability and insurance purposes, as it dictates who is liable for the goods during transit and after they are delivered.