Question

If a sells to b, and b obtains title while goods are in transit, the goods were shipped _______. if c sells to d, and c maintains title until the goods arrive at d's door then the goods were shipped

Answer 1

If a sells to b, and b obtains title while goods are in transit, the goods were shipped FOB SHIPPING POINT.

If c sells to d, and c maintains title until the goods arrive at d's door then the goods were shipped FOB DESTINATION.

FOB stands for Free on Board. The recording of the sale will be dependent on whether it is FOB shipping point or FOB destination. In FOB shipping point, the buyer becomes the owner of the item when it is shipped. In FOB destination, the buyer becomes the owner of the items when it is received.