                                 CODE OF VIRGINIA

F.O.B. AND F.A.S. TERMS (§ 8.2-319)

1. Unless otherwise agreed the term F.O.B. (which means &#8220;free on
board&#8221;) 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 title (&#xA7; 8.2-504) 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 title (&#xA7; 8.2-503):

   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
   title on the form of bill of lading (&#xA7; 8.2-323).

2. Unless otherwise agreed the term F.A.S. vessel (which means &#8220;free
alongside&#8221;) 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 cooperation under
this title (&#xA7; 8.2-311). 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.

HISTORY: 1964, c. 219.