Asked by David Lindsey on Apr 28, 2024
Verified
Goods that are consigned to another party:
A) belong to the other party because title has passed.
B) belong to the company that has consigned them.
C) belong to the consignee.
D) Both B and C are correct.
Consignment
Sales of goods through an agent who has possession but not ownership.
Title
The legal right to own, use, or dispose of something, such as property or intellectual property.
Consigned Party
The entity or person holding goods on behalf of another in a consignment agreement, where the goods are sold on the owner's behalf.
- Understand the concept of consignment in inventory management.
Verified Answer
BP
Brandon PearsonApr 28, 2024
Final Answer :
B
Explanation :
Goods that are consigned to another party still belong to the consignor (the company that has consigned them) until they are sold. Title does not pass to the consignee; the consignee simply holds and may sell the goods on behalf of the consignor.
Learning Objectives
- Understand the concept of consignment in inventory management.