What is the reason for using the term F.O.B.?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 11DRQ
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What is the reason for using the term F.O.B.?

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When shipment of goods takes place from one place to another, it becomes important to decide who will be the responsible party if any case of damage or destruction of goods take place during the shipment.

For this purpose, the term F.O.B. was originated so that someone would be made liable for the losses.

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