What is the name of your state? Arizona
I work for a wholesale jeweler where consignment is a common transaction. I need to know when title actually transfers in a consignment sale. Is it when the goods have been paid in full by the consignee or at some other point in time.
A Michigan customer of our filed bankruptcy in the middle of a consignment sale and the trustee is going after my employer as a party to the suit. Apparantly he had commited to the purchase but had not paid for the merchandise in full. The details are sketchy, but I believe the item was returned to my employer prior to the completed sale and his partial payments sent back to him. From what it sounds like to me they are trying to tag it as a preferential transfer and hold my employer responsible for the difference of the value of the stone and the partial payments refunded to the Michigan party.
One way or the other, was ownership status obtained by the consignee so that the stone becomes a part of his inventory or not? If it's not his property to include in the bankruptcy settlement, what is the best way to handle the situation???
I work for a wholesale jeweler where consignment is a common transaction. I need to know when title actually transfers in a consignment sale. Is it when the goods have been paid in full by the consignee or at some other point in time.
A Michigan customer of our filed bankruptcy in the middle of a consignment sale and the trustee is going after my employer as a party to the suit. Apparantly he had commited to the purchase but had not paid for the merchandise in full. The details are sketchy, but I believe the item was returned to my employer prior to the completed sale and his partial payments sent back to him. From what it sounds like to me they are trying to tag it as a preferential transfer and hold my employer responsible for the difference of the value of the stone and the partial payments refunded to the Michigan party.
One way or the other, was ownership status obtained by the consignee so that the stone becomes a part of his inventory or not? If it's not his property to include in the bankruptcy settlement, what is the best way to handle the situation???