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Questions and Answers
In consignment, who retains full ownership of the property until the item is sold?
In consignment, who retains full ownership of the property until the item is sold?
- The final buyer
- The consignment shop owner
- The third-party facilitator
- The person giving permission (correct)
What happens to the rights of the consignor until the item is sold or abandoned?
What happens to the rights of the consignor until the item is sold or abandoned?
- Rights are transferred to the third-party
- Rights are given to the consignment shop owner
- Rights are transferred to the final buyer
- Rights are maintained by the consignor (correct)
What is the primary purpose of consignment?
What is the primary purpose of consignment?
- To assume full responsibility for goods
- To transfer full ownership of goods
- To provide storage for goods
- To facilitate the sale of goods (correct)
What typically happens to the price of an item within the time of the consignment contract?
What typically happens to the price of an item within the time of the consignment contract?
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What does consignment stock refer to?
What does consignment stock refer to?
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Study Notes
Consignment Basics
- Consignor: Retains full ownership of the property until the item is sold.
- Consignee: Handles the sale of the item on the consignor's behalf.
- Consignor's Rights: Remain in effect until the item is sold or abandoned.
- Primary Purpose of Consignment: To sell items through a third-party without the consignor needing to directly engage in the sale.
Price Fluctuations
- Price Adjustment: The consigned item's price may fluctuate during the consignment contract period, as the market value of the item can change.
Consignment Stock
- Consignment Stock: Refers to goods held by the consignee for sale on behalf of the consignor, awaiting sale or potential return.
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Description
Test your understanding of consignment with this quiz. Explore the concept of consignment, including its process, benefits, and key terms. Assess your knowledge of consignment in auctions, shipping, goods transfer, and consignment stores.
