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Choosing Suitable Shipping Terms. You are a seller and conduct business with several customers who purchase your goods on credit. Your standard contract requires an

Choosing Suitable Shipping Terms.

You are a seller and conduct business with several customers who purchase your goods on credit. Your standard contract requires an FOB Shipping Point term, leaving the buyer with the responsibility for goods in transit and shipping charges. One of your long-term customers asks if you can change the terms to FOB Destination to help them save money. Do you change the terms, why or why not? What positive and negative implications could this have for your business, and your customer? What, if any, restrictions might you consider if you did change the terms?

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