WebCredenza 2024 The law of consignments: How selling goods for others works

Recording available after original program date, 3/20/2024

In a consignment, the consignor, ships or transfers control of goods to a seller, the consignee, who agrees to market the property to buyers and pay over some portion of the sales proceeds to the consignor. The arrangement involves an intricate set of rights and obligations among the parties. There are also substantial and often overlooked risks, including that the consignee’s creditors may seek to claim a security interest in the consigned property. If these risks are not properly understood and remedies not carefully considered, the consignor is at risk of loss. This program will provide to you the law of consignments, UCC Article 9 issues and risks, and provide practical tips for drafting consignment agreements.

• Structure of common consignment transactions.
• Parties, rights and obligations – consignor as creditor, consignee as debtor, creditors.
• Risks of loss to consignor and how it can protect itself against consignee’s creditors.
• Consignor remedies for consignee breach.
• Law of consignments and relationship to secured finance.
• Circumstances when UCC Article 9 does not apply to consignments.

Opinions and positions stated by presenters of MoBarCLE programs are those of the presenters and not necessarily those of The Missouri Bar. This program is intended as information for lawyers in Missouri, in conjunction with other research they deem necessary, in the exercise of their independent judgment.

Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for GAL Certification, ethics, elimination of bias or Kansas credit.