Michigan Compiled Laws

Mich. Comp. Laws § 440.2319 (2026)

F.O.B. and F.A.S. terms.

✓ current as of July 2026

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UNIFORM COMMERCIAL CODE

Act 174 of 1962

440.2319 F.O.B. and F.A.S. terms.

Sec. 2319.

(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 2504) 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 2503);

(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 2323).

(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 2311). 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: 1962, Act 174, Eff. Jan. 1, 1964

Notes of Decisions

Cited in 6 cases, 1975–2002 · leading case: Starbrite Distrib., Inc. v. Excelda Mfg. Co., 562 N.W.2d 640 (Mich. 1997).

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Starbrite Distrib., Inc. v. Excelda Mfg. Co., 562 N.W.2d 640 (Mich. 1997). · cites it 6× “Starbrite then sued Excelda, which filed a third-party claim against P.D. George in the same court. The court also dismissed this suit on the basis of a lack of jurisdiction.”

Alofs Mfg. Co. v. Toyota Mfg., Kentucky, Inc. (In Re Alofs Mfg. Co.), 209 B.R. 83 (Bankr. W.D. Mich. 1997). · cites it 2× “” See Mich. Comp. Laws Ann. § 440.2319 (b). There is ample evidence in the record to support the conclusion that the disputed Tooling was delivered to either Target or Alois (or “drop shipped” to ITS in Flint), for testing purposes.”

Eberhard Mfg. Co. v. Brown, 232 N.W.2d 378 (Mich. Ct. App. 1975). · cites it 2× “See MCLA 440.2319; MSA 19.2319. There was testimony by plaintiff that its goods are sold F.”

GMAC Bus. Credit, L.L.C. v. Ford Motor Co. (In Re H.S.A. II, Inc.), 271 B.R. 534 (Bankr. E.D. Mich. 2002). “” Ford contends that because virtually all of its purchase orders contain the terms “FOB Carrier Supplier’s PLT,” title and risk of loss was transferred to Ford upon completion of the parts.”

Starbrite Distrib., Inc. v. EXCELDA MANUF. CO., 536 N.W.2d 558 (Mich. Ct. App. 1995). “, [2] the term "F.O.B." (which means "free on board") at a named place is a delivery term.”

Starbrite Distrib., Inc. v. Excelda Mfg. Co., 211 Mich. App. 475 (Mich. Ct. App. 1995). “" (which means "free on board”) at a named place is a delivery term. When the term is f.”

— Mich. Comp. Laws § 440.2319(1)(a) — 2 cases

Starbrite Distrib., Inc. v. Excelda Mfg. Co., 562 N.W.2d 640 (Mich. 1997). “Starbrite then sued Excelda, which filed a third-party claim against P.D. George in the same court. The court also dismissed this suit on the basis of a lack of jurisdiction.”

Starbrite Distrib., Inc. v. EXCELDA MANUF. CO., 536 N.W.2d 558 (Mich. Ct. App. 1995). “, [2] the term "F.O.B." (which means "free on board") at a named place is a delivery term.”

— Mich. Comp. Laws § 440.2319(l)(a) — 2 cases

Starbrite Distrib., Inc. v. Excelda Mfg. Co., 211 Mich. App. 475 (Mich. Ct. App. 1995). “" (which means "free on board”) at a named place is a delivery term. When the term is f.”

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