According to the Uniform Commercial Code, what does FOB stand for?

The term "FOB" stands for "Free on Board," which is a key concept in the Uniform Commercial Code (UCC) related to shipping and transportation of goods. The meaning of "Free on Board" is that the seller is responsible for delivering goods to a particular location and assumes the risk of loss or damage until the goods have been loaded onto a shipping vessel or carrier. Once the goods are on board, the buyer assumes the risk and any further obligations regarding shipping costs.

This terminology is crucial for defining the point at which ownership and responsibility transfer from the seller to the buyer, affecting both parties' liability in the event of loss or damage during transportation. Understanding FOB is essential for anyone involved in the import and export of goods, as it outlines the responsibilities regarding shipping costs and risks associated with the delivery of goods.