Open Road Showroom sells new and used motorcycles.Some of the motorcycles are held on consignment,including six consigned by Pedro Cycles,Inc.Like most consignments,Open Road's deal with Pedro Cycles is
A)a bailment.
B)a sale.
C)a delivery ex-ship.
D)a lease.

Question

Quizplus · Accepted Answer

A bailment is an arrangement where the owner of the goods (Pedro Cycles) transfers possession of them to someone else (Open Road Showroom) for a specific purpose, but retains ownership. In this case, Pedro Cycles has consigned the motorcycles to Open Road Showroom for sale, so they are held on bailment. The other options (sale, delivery ex-ship, lease) do not accurately represent the arrangement between the two companies.

Open Road Showroom Sells New and Used Motorcycles