Under a consignment sales arrangement,
A) the consignor receives the merchandise to sell.
B) the consignor retains legal title.
C) the consignee ships the merchandise to the consignor.
D) the consignee retains legal title.

Question

Quizplus · Accepted Answer

Under a consignment sales arrangement, the consignor (the owner of the goods) retains legal title to the merchandise until it is sold. The consignee (the party selling the goods on behalf of the consignor) does not obtain legal title to the merchandise; instead, they sell the goods on behalf of the consignor.

Under a Consignment Sales Arrangement