Re: Consignment

[Ramey Peticolas-Stroud <ramey@wvi.com>]

Kristen L Olko wrote:
> If you have a saddle for consignment with a vendor and it hasn't sold
> in 6 months,and  you request it back, what if any fees are you obligated
> to pay them? 

DISCLAIMER: This is just a general business discussion.  Please consult
an attorney for specific legal advice.  

Hi Kristen,
	A consignment agreement is also known as a bailment contract and may be
written or oral.  The terms of the agreement or the fee structure vary
with each bailment.  So the answer to your question is what was the
mutual understanding at the time you agreed to deliver the saddle.   If
these terms were not discussed, or there is no written record, then
industry standards or "practice of the trade" probably apply.  These
standards are often memorialized in state statutes under the heading
"Uniform Commercial Code."

>What can you do if they sell it for less than you'd agreed
> to without your permission. It's an endurance saddle.

Again it depends on the original agreement.  If you authorized the
vendor to use reasonable judgment, and the saddle was sold at fair
market value, then there is probably no recourse.  If the vendor was
clearly responsible for returning the saddle if YOUR price was not
received, then the sale probably constitutes a breach of the bailment
contract.  

If informal resolution is not possible, then a small claims actions is
probably the cheapest way to ask for damages under a breach contract
theory.  The amount of damages would probably be the difference between
the fair market value of the saddle and the amount actually recieved,
less the normal bailment fee.  Emotional stress damages are usually not
allowed in contract disputes. 

Hope this helps.

Ramey