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WAEC Commerce 2005 Question 25

Question 25

Foreign Trade Documents

A seller quoting his goods loco price means that

  1. A.all charges are borne by the seller
  2. B.all charges are borne by the buyer
  3. C.the seller pays carriage as far as the buyers warehouse
  4. D.the price includes cost, insurance and freight.
Show the answer and explanation

Answer: B (all charges are borne by the buyer)

Explanation

A loco price is the price at the seller's premises; the buyer bears all charges from there.