In: Operations Management
Which of the following is true of a shipment contract?
The seller must put the goods in the possession of the carrier. |
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The seller must tender the delivery of goods to the buyer. |
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The seller offers to turn the goods to the buyer, and the buyer offers to pay for them. |
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The seller tenders the delivery of goods to the carrier, along with the document title. |
The seller must put the goods in the possession of the carrier. |
A shipment contracts authorizes the seller to ship the goods by a carrier, instead of making a delivery at a particular destination. Seller is required to put the goods into the hands of the carrier, make a reasonable transportation contract, tender to the buyer necessary documents to enable the buyer to obtain possession of goods from the carrier and promptly notify the buyer that the shipment has been made. This is as per UCC 2-504