Hey, I know what you’re asking, so here’s the short layman’s definition:
“The term FOB is also used in modern domestic shipping within North America to describe the point at which a seller is no longer responsible for shipping costs.”
So, FOB shipping point vs. FOB destination. It’s a legal designation for shipping within NA. And it holds up in arbitration, per the contract terms that are agreed to by both parties.
Right.
FOB stands for "Free On Board." I won't bore the hell out of you with the details, but the tax charged on a sale can be impacted depending on whether goods are shipped FOB origin or destination.