Which of the following is true of a consignment agreement?
A) If a manufacturer delivers all goods to its dealers on a consignment basis, the goods become the property of the dealer.
B) The owner of goods delivers them to another who is to act as the owner's agent in selling the goods.
C) If a manufacturer delivers all goods to its dealers on a consignment basis, the dealer cannot lawfully fix the price of those goods.
D) It is always held to be joint action.

Question

Quizplus · Accepted Answer

A consignment agreement is one in which the owner of goods delivers them to another who is to act as the owner's agent in selling the goods. If a manufacturer delivers all goods to its dealers on a consignment basis, it can lawfully fix the price of those goods since the goods remain its property and are not the property of the dealers. Consignments have also been held to be unilateral action.

Which of the Following Is True of a Consignment Agreement