What shipping term applies by default under the UCC when a sales contract is silent on such terms?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

When a sales contract is silent on shipping terms under the Uniform Commercial Code (UCC), the default shipping term that applies is "F.O.B. Shipping Point." This means that the seller fulfills their obligation to deliver the goods once they have been shipped from the seller's location. Consequently, the risk of loss or damage during transit shifts to the buyer as soon as the goods are dispatched.

This default rule is crucial as it establishes a clear understanding of when the responsibility and risk transfer from the seller to the buyer in the absence of specific terms. The UCC aims to simplify and provide clarity in commercial transactions, and the "F.O.B. Shipping Point" term serves this purpose effectively by indicating that unless otherwise stated, purchasers assume responsibility for the goods during delivery.

Options such as "F.O.B. Destination" suggest that the seller retains responsibility until the goods reach the buyer, which contradicts the default rule. "F.A.S. Destination Port" is a term used primarily in maritime transport, and "C.I.F." involves costs, insurance, and freight, which are not the default positions under the UCC when no terms are specified. Therefore, understanding the specifics of these terms is crucial for both buyers and sellers in any sales contract to

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