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 named
place, 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 the
goods in the manner provided in this chapter (Section 70A-2-504) and bear the expense and risk
of 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 expense
and risk transport the goods to that place and there tender delivery of them in the manner provided
in 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, the
seller 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 the
provisions 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 a
named port, even though used only in connection with the stated price, is a delivery term under
which the seller must
(a) at his own expense and risk deliver the goods alongside the vessel in the manner usual
in 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 a
duty to issue a bill of lading.
(3) Unless otherwise agreed in any case falling within Subsection (1)(a) or (c) or
Subsection (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 appropriate
case its name and sailing date. The seller may treat the failure of needed instructions as a failure
of co-operation under this chapter (Section 70A-2-311). He may also at his option move the
goods 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 make
payment against tender of the required documents and the seller may not tender nor the buyer
demand delivery of the goods in substitution for the documents.
Enacted by Chapter 154, 1965 General Session
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Last revised: Thursday, May 28, 2009