8 If the shipping terms indicate that the seller owns the goods until delivered to the buyer, this arrangement is known as: FOB shipping point O Goods in transit FOB destination

When shipping terms specify that the seller retains ownership of the goods until they reach the buyer, this is known as "FOB destination." Essentially, the seller is responsible for any risks or costs associated with the goods until they safely arrive at the buyer's location, making it a more secure option for buyers. Conversely, in "FOB shipping point," the seller transfers ownership as soon as the goods are shipped. This means the buyer assumes responsibility during transit, which can sometimes lead to confusion or disputes about liability. So, knowing these terms helps to set expectations and ensures smoother transactions!