1. You are shipping 5 skids of sulfuric acid from a Montreal Manufacturer, sold FCA Montreal (Incoterms 2020). This is an incorrect use of Incoterms because a specific named location is given. After the sulfuric acid was loaded into the Cartage company truck, at the plant, the driver on the way to the export terminal in Montreal has an accident on the expressway. His truck jackknifes, tips, and crashes against the steel guardrail, busting the trailer doors open and spilling sulfuric acid cans all over the highway, closing it for hours in both directions.

This leaves us with two possible situations:

Situation #1: If the buyers nominated carrier was moving the sulfuric acid to the export terminal Montreal, then the buyer bears the risk. Please note that nominated carrier may also mean local forwarder, or forwarders agent overseas giving instructions to their local agent to collect the freight. The proper Incoterm for this situation would be a. Full Incoterm: ____________________________________

Situation #2: The seller decides to use their own in-house trucks to deliver the cargo to the export terminal. The only information provided to the seller are the booking details for the move. In this situation the seller has yet to deliver the goods in accordance with the Incoterm used. Thus, the seller has the risk of loss. The proper Incoterm for this situation would be

b. Full Incoterm: _____________________________________