70A-2-319 - F.O.B. and F.A.S. terms.
70A-2-319. F.O.B. and F.A.S. terms.
(1) Unless otherwise agreed the term F.O.B. (which means "free on board") at a namedplace, even though used only in connection with the stated price, is a delivery term under which
(a) when the term is F.O.B. the place of shipment, the seller must at that place ship thegoods in the manner provided in this chapter (Section 70A-2-504) and bear the expense and riskof putting them into the possession of the carrier; or
(b) when the term is F.O.B. the place of destination, the seller must at his own expenseand risk transport the goods to that place and there tender delivery of them in the manner providedin this chapter (Section 70A-2-503);
(c) when under either (a) or (b) the term is also F.O.B. vessel, car or other vehicle, theseller must in addition at his own expense and risk load the goods on board. If the term is F.O.B.vessel the buyer must name the vessel and in an appropriate case the seller must comply with theprovisions of this chapter on the form of bill of lading (Section 70A-2-323).
(2) Unless otherwise agreed the term F.A.S. vessel (which means "free alongside") at anamed port, even though used only in connection with the stated price, is a delivery term underwhich the seller must
(a) at his own expense and risk deliver the goods alongside the vessel in the manner usualin that port or on a dock designated and provided by the buyer; and
(b) obtain and tender a receipt for the goods in exchange for which the carrier is under aduty to issue a bill of lading.
(3) Unless otherwise agreed in any case falling within Subsection (1)(a) or (c) orSubsection (2) the buyer must seasonably give any needed instructions for making delivery,including when the term is F.A.S. or F.O.B. the loading berth of the vessel and in an appropriatecase its name and sailing date. The seller may treat the failure of needed instructions as a failureof co-operation under this chapter (Section 70A-2-311). He may also at his option move thegoods in any reasonable manner preparatory to delivery or shipment.
(4) Under the term F.O.B. vessel or F.A.S. unless otherwise agreed the buyer must makepayment against tender of the required documents and the seller may not tender nor the buyerdemand delivery of the goods in substitution for the documents.
Enacted by Chapter 154, 1965 General Session