Code of Alabama

Ala. Code § 7-2-319 (2026)

F.o.b. and F.a.s. Terms.

✓ official Alabama Legislature (ALISON) text, current July 2026

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(1) Unless otherwise agreed the term F.O.B. (which means “free on board”) 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 article (Section 7-2-504) 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 article (Section 7-2-503);

(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 article on the form of bill of lading (Section 7-2-323).

(2) Unless otherwise agreed the term F.A.S. vessel (which means “free alongside”) 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 article (Section 7-2-311). 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.

(Acts 1965, No. 549, p. 811.)

Notes of Decisions

Cited in 5 cases, 1982–1999 · leading case: Pileri Indus., Inc. v. Consol. Indus., Inc., 740 So. 2d 1108 (Ala. Civ. App. 1999).

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Pileri Indus., Inc. v. Consol. Indus., Inc., 740 So. 2d 1108 (Ala. Civ. App. 1999). · cites it 4× “the place of shipment,' [see § 7-2-319(1)(a), Ala.Code 1975,] or `F.O.”

Oxmoor Press, Inc. v. State, 500 So. 2d 1098 (Ala. Civ. App. 1986). · cites it 2× “" Ala.Code (1975), § 7-2-319(1)(b). Applying this definition to the present case, it is clear that, when South Central opted to designate the F.”

Warrior Tombigbee Transp. Co. v. 5,775.674 Net Tons of Coal, 570 F. Supp. 1405 (S.D. Ala. 1983). · cites it 3× “The pertinent portions of section 7-2-319 of the Alabama Code of 1975, which defines the term, “F.”

State, Dep't of Revenue v. Dixie Tool & Die Co., 537 So. 2d 921 (Ala. Civ. App. 1987). · cites it 2× “Ala.Code 1975, § 7-2-319(1)(a). It is undisputed in the present case that in each transaction, the product sold to the out-of-state buyers was shipped by common carrier FOB origin.”

Ryder Truck Lines, Inc. v. Santiam Midwest Lumber Co., 431 So. 2d 966 (Ala. Civ. App. 1982). · cites it 2× “Therefore, American did not deliver the lumber into the possession of San-tiam’s carrier. The result is that pursuant to § 7-2-401, supra, American (seller) did not complete its performance with respect to physical delivery of the lumber.”

— Ala. Code § 7-2-319(1)(a) — 3 cases

Pileri Indus., Inc. v. Consol. Indus., Inc., 740 So. 2d 1108 (Ala. Civ. App. 1999). “the place of shipment,' [see § 7-2-319(1)(a), Ala.Code 1975,] or `F.O.”

Warrior Tombigbee Transp. Co. v. 5,775.674 Net Tons of Coal, 570 F. Supp. 1405 (S.D. Ala. 1983). “The pertinent portions of section 7-2-319 of the Alabama Code of 1975, which defines the term, “F.”

State, Dep't of Revenue v. Dixie Tool & Die Co., 537 So. 2d 921 (Ala. Civ. App. 1987). “Ala.Code 1975, § 7-2-319(1)(a). It is undisputed in the present case that in each transaction, the product sold to the out-of-state buyers was shipped by common carrier FOB origin.”

— Ala. Code § 7-2-319(1)(b) — 2 cases

Oxmoor Press, Inc. v. State, 500 So. 2d 1098 (Ala. Civ. App. 1986). “" Ala.Code (1975), § 7-2-319(1)(b). Applying this definition to the present case, it is clear that, when South Central opted to designate the F.”

Pileri Indus., Inc. v. Consol. Indus., Inc., 740 So. 2d 1108 (Ala. Civ. App. 1999). “the place of shipment,' [see § 7-2-319(1)(a), Ala.Code 1975,] or `F.O.”

— Ala. Code § 7-2-319(a) — 1 case

Pileri Indus., Inc. v. Consol. Indus., Inc., 740 So. 2d 1108 (Ala. Civ. App. 1999). “the place of shipment,' [see § 7-2-319(1)(a), Ala.Code 1975,] or `F.O.”

— Ala. Code § 7-2-319(b) — 1 case

Pileri Indus., Inc. v. Consol. Indus., Inc., 740 So. 2d 1108 (Ala. Civ. App. 1999). “the place of shipment,' [see § 7-2-319(1)(a), Ala.Code 1975,] or `F.O.”

— Ala. Code § 7-2-319(l)(a) — 1 case

Ryder Truck Lines, Inc. v. Santiam Midwest Lumber Co., 431 So. 2d 966 (Ala. Civ. App. 1982). “Therefore, American did not deliver the lumber into the possession of San-tiam’s carrier. The result is that pursuant to § 7-2-401, supra, American (seller) did not complete its performance with respect to physical delivery of the lumber.”

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