The transfer of possession but not title to a buyer for a trial period is known as:
A)a sale or return.
B)a sale on approval.
C)entrusting to a merchant.
D)a consignment.

Question

Quizplus · Accepted Answer

A sale on approval allows the buyer to possession of the goods for a trial period before deciding whether or not to purchase, without transferring ownership. Option A is incorrect because a sale or return involves an actual sale with the option of returning the goods for a refund. Option C is incorrect because entrusting to a merchant refers to giving goods to a merchant to sell on the owner's behalf. Option D is incorrect because a consignment involves transferring possession and ownership to a consignee who sells the goods on behalf of the consignor.

The Transfer of Possession but Not Title to a Buyer