posted on July 13, 2005 11:32:30 PM new
The following is from the UCC (Uniform Commercial Code) which is recognized in some form by every state.
F.O.B. Origin -
Buyer pays freight charges
Buyer bears freight charges
Buyer owns goods in-transit
Buyer files clams if any
http://www.western.edu/purchasing/docs/fob.pdf
Therefore, if the buyer ignores the need for insurance and the Seller can prove shipping, the buyer is screwed. Even if payment is by credit card.
It would seem to me at first glance, that a statement as to the transaction being F.O.B. Origin would cover the Seller from any and all charges by eBay, PayPal, or a Credit Card Co. when the item disappears after verified shipping.
Just place the following info into your item description: Item shipped F.O.B. Origin.
posted on July 13, 2005 11:41:53 PM new
You are correct. The UCC has so many court decisions behind it, that it's practically bulletproof. Be aware that the state of Louisania has not fully adopted the UCC and you could have problems there.
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
posted on July 13, 2005 11:50:00 PM new
Another definition:
FOB ORIGIN
Title passes at origin, and buyer has total responsibility over the goods while in shipment. Customer takes ownership (title and control) of the goods at the origin (when the carrier signs for goods) and is responsible for transportation of the goods beyond this point. The customer files claims (if any).
posted on July 14, 2005 12:12:01 AM new
F.O.B. - shipping term - free on board
UCC - Uniform Commercial Code, which is used in contract law to govern commercial transactions between parties. Remember the contract that exists between buyer and seller? The UCC can be applied to that contract. The UCC is an attempt to codify all commercial transactions. It has been adapted in some form by all the states to simplify commercial dealings around the country.
posted on July 14, 2005 12:15:16 AM new
FOB= free on board. Which is the point at which title to goods pass. A great way to dodge sales taxes and state income taxes amongst other things, including liability for transit loss or damage.
UCC = Uniform Commercial Code. A model law that each state has to adopt to enforce a uniform set of standards. My experience with it has been mainly in warehouse receipt terms and conditions. It means you can store your possessions in California or New York and the contract terms and conditions will be identical. In the case of liability, a court decision in Podunk, Arkansas can be introduced and accepted as evidence in a trial in New York City. It is in this aspect that I warned the OP that the UCC was never adopted in it's entirety by the state of Lousiana.
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
posted on July 14, 2005 09:24:32 AM new
Thanks for the tip - will add that to our insurance, and requirement of signature when item is received. One can never be covered too much from Charge Backs.
[B]IF SOMEONE WANTS A COPY OF THE PAGE REGARDING FOB AND CAN'T SEEM TO COPY IT. HERE IT IS:
8 fob Rev 01/01
FOB DEFINITION - SHIPPING TERMS OF SALE
FOB, Free On Board, is a transportation term that indicates that the price for goods includes delivery at
the seller’s expense to a specified point and no further.
The FOB term is used with an identified physical
location to determine 1) the responsibility and basis for payment of freight charges, and 2) the point at
which title for the shipment passes from seller to buyer.
The FOB location terms, Origin and Destination, may be qualified by modifiers.
The modifier determines
the payment of the transportation charges. Modifiers denote nothing about the title of the goods or filing of
claims. The most three common modifiers are: Collect, Prepaid & Add, and Prepaid & Allow.
Collect The carrier collects the transportation charges from the buyer.
Prepaid & Add The seller prepays the transportation charges, but adds the charges to the invoice
for reimbursement from the buyer.
Prepaid & Allow The seller prepays the transportation charges and they are already included in the
contract price.
TITLE & CONTROL OF GOODS
FOB ORIGIN
The buyer assumes title and control of the goods the moment the carrier signs the bill of lading.
The buyer assumes risk of transportation and is entitled to route the shipment.
The buyer is responsible for filing claims for loss or damage.
FOB DESTINATION
The seller retains title and control of goods until they are delivered and the contract of carriage has been
completed.
The seller selects the carrier and is responsible for the risk of transportation.
The seller is responsible for filing claims for loss or damage.
PAYMENT TERM VARIATIONS
POINT OF ORIGIN
FOB Origin Unless qualified in the FOB clause, the buyer is
responsible for freight charges.
FOB Origin Freight Collect Buyer pays and bears freight charges.
FOB Origin, Freight Prepaid Seller pays and bears freight charges.
FOB Origin, Freight Prepaid & Add Seller pays and invoices buyer for freight charges.
DESTINATION
FOB Destination Unless qualified in the FOB clause, the seller is
responsible for freight charges.
FOB Destination, Freight Collect Buyer pays and bears the freight charges.
FOB Destination, Freight Prepaid Seller pays and bears the freight charges.
FOB Destination, Freight Collect & Allowed Buyer pays freight charges and deducts the amount from
seller's invoice.
FOB Destination, Freight Prepaid & Add Seller pays the freight and adds the freight charges to its
invoice to the buyer.
9 fob Rev 01/01
ANOTHER ILLUSTRATION OF THE MEANING OF THE TERMS OF SALE
~"It does not matter what I think, it does not matter what you think. The only thing which matters is: What is the TRUTH!"~
[ edited by jwpc on Jul 14, 2005 09:33 AM ]
posted on July 14, 2005 12:43:16 PM new
Just a note for anyone who might consider using this in their auctions. Realize you will be giving your buyer the right to determine the service you are to use to ship.
"The buyer assumes risk of transportation and is entitled to route the shipment."
Your buyer can give your heartburn by insisting on a cheaper carrier that may be 20 miles away from you.
Needless to say, if your ad states a flat shipping rate, it can get to be a PITA!
