Under a Consignment Arrangement, the Risk That Merchandise Might NOT

question 85

Multiple Choice

Under a consignment arrangement, the risk that merchandise might NOT sell is

• A) held with the consignor.
• B) held with the consignee.
• C) shared by the consignor and the consignee.
• D) There is no risk associated with goods held on consignment.

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Definitions:

Arbitration

Arbitration is a method of resolving disputes outside the courts, where an impartial third party, known as an arbitrator, makes a decision that's binding on the parties involved.

Binding Arbitration Clause

A contract provision mandating that all disputes arising under the contract must be settled by arbitration.

Disputes

Conflicts or arguments between parties that may require resolution through negotiation or legal means.

Contract

A legally binding agreement between two or more parties, enforceable by law.