What does the term "consignor" refer to in a consignment agreement?

What does the term "consignor" refer to in a consignment agreement?

• A. The buyer of the vehicle
• B. The representative of the dealer
• C. The seller of the vehicle
• D. The financial institution backing the sale

Answer: (C)

In a consignment agreement, the term "consignor" specifically refers to the seller of the vehicle. This is the person or entity that delivers the vehicle to the dealer with the intention of selling it on their behalf. The consignor retains ownership of the vehicle until it is sold, at which point the dealer sells it and remits the agreed-upon proceeds back to the consignor. This arrangement allows the consignor to leverage the dealer's resources to reach potential buyers while maintaining ownership until a sale is made. Understanding the role of the consignor is crucial in the context of consignment agreements, as it highlights the distinction between ownership and dealership responsibilities. While the dealer facilitates the sale, the consignor is ultimately responsible for the vehicle's title and any liabilities associated with it until the transaction is completed.

In a consignment agreement, the term "consignor" specifically refers to the seller of the vehicle. This is the person or entity that delivers the vehicle to the dealer with the intention of selling it on their behalf. The consignor retains ownership of the vehicle until it is sold, at which point the dealer sells it and remits the agreed-upon proceeds back to the consignor. This arrangement allows the consignor to leverage the dealer's resources to reach potential buyers while maintaining ownership until a sale is made.

Understanding the role of the consignor is crucial in the context of consignment agreements, as it highlights the distinction between ownership and dealership responsibilities. While the dealer facilitates the sale, the consignor is ultimately responsible for the vehicle's title and any liabilities associated with it until the transaction is completed.