Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet from Chemical, Inc., then placed the order with the manufacturer and arranged for its transportation by truck to the Tony Pool store. Chemical, Inc. took title to the pool chemicals but never actually took possession of them. Chemical, Inc. is an example of a ________.
A) drop shipper
B) truck jobber
C) rack jobber
D) mail-order wholesaler
E) cash-and-carry wholesaler

Question

Quizplus · Accepted Answer

Chemical, Inc. is acting as a drop shipper in this scenario, as they took title to the product but never physically possessed it. They simply arranged for the transportation of the product from the manufacturer to Tony Pool Chemical Co.