Transportation Operations LINCS Practice Exam

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Who takes responsibility for the shipment in an Ex Works agreement?

The seller assumes responsibility for delivery
The buyer assumes total responsibility for the shipment
The freight company manages the shipment
The shipping agent handles all responsibilities

The correct answer is: The buyer assumes total responsibility for the shipment

In an Ex Works agreement, the buyer assumes total responsibility for the shipment. This means that once the goods are made available for pickup at the seller’s premises, the responsibility for arranging transportation, payment of freight charges, customs clearance, and all related logistics falls entirely on the buyer. The seller's obligation is limited to making the goods available for the buyer to collect, and they do not bear any responsibility for subsequent tasks involved in moving the goods to the final destination. This arrangement places the onus on the buyer to manage the shipping process, including any risks or costs that might arise during transit. The framework of an Ex Works agreement is designed to minimize the seller's responsibilities while maximizing the buyer's control over the logistics involved in the shipment.