Question

Joe's Bargain Basement, LLC sells second-hand clothing. Sometimes, Joe will sell his friend's clothing through his storefront. He does so under a basic consignment contract. Who legally owns the consigned goods sold at Joe's store? _____

Joe's friend

No one owns the goods under a consignment contract

Joe's Bargain Basement, LLC

Joe

Answer 1

Answer:-

In this situation,Joe's friend legally owns the consigned goods sold at Joe's store.

Explanation:-

Consignment Shop is a shop that sells used goods for owners(consignors)typically at a lower cost than new goods.It is usually understood that the Consignee pays the Consignor a portion of proceeds from such sale.Payments are not made unless and until the item is sold. They can be chain stores like Buffalo Exchange or individual Boutique stores.The Consignor retains the title to the goods and can end the arrangement anytime by requesting its return.

In the above case,as Joe's friend is consignor,he has the title to goods.