The Fashion Buyer for Neiman Marcus Is in Italy to View

Multiple Choice

The fashion buyer for Neiman Marcus is in Italy to view the new collections and to order for the coming season. In Milan, she negotiates a good price for a quantity of shoes in a range of sizes and styles at FOB factory. This means that:

A) the factory pays freight to the U.S., Neiman Marcus pays freight within the U.S.
B) the factory selects the mode of transportation, pays freight charges, and is responsible for any damage because the seller retains title to the goods until they are delivered to Neiman Marcus.
C) Neiman Marcus and the factory split freight costs.
D) Neiman Marcus selects the mode of transportation, pays freight charges, and is responsible for any damage while the shoes are in transit because title passed to the buyer at the point of loading.