Under the F.O.B. clause, Jason also is responsible for the independent trucker’s payment to deliver goods to Grocery Inc.
The shipment is loaded and the trucker heads out to deliver the goods on schedule. In the contract between Jason’s Orchard and Grocery Inc., there is a section that outlines a trucker’s responsibilities when delivering goods.
The contract’s transportation subpart states that shipments shall be delivered in good order and condition to the point of delivery specified in the contract. Following this statement, a contractor (trucker) is responsible for any loss and/or damage to the goods occurring before receipt of the shipment by the consignee at the delivery point specified in the contract.
Jason is responsible for charges incurred to schedule and initiate delivery to the point of destination (Grocery Inc.)
Who bears the risk?
Jason and independent trucker are both bear the risk. Jason bears the risk because his contract was F.O.B. Under F.O.B., Jason the seller is responsible because he bears the freight charges, he owns the goods in transit, and can file a claim against the transporter for any loss or damages. Grocery Inc., can claim profit loss from a delayed delivery and damaged goods.
The independent trucker bears the risk, because the transportation portion of the F.O.B. contract, holds the transporter responsible once goods are loaded and in route. The goods owned by Jason are ruined due to the trucks mechanical issues. Jason can now file a claim against the trucker to recover his losses