alt Hacker NewsI have absolutely no doubts a court would consider it impossible to transfer goods under consignment to a different entity free of the burden of the consignment contract. So the corporation trying to reach into the franchise to grab these goods without honoring the contract is absolute BS and they should be dragged through the mud over it.
The unfortunate loophole here is that, potentially, by shutting down that franchise in a bankruptcy the corporation may end up being preferred for being made whole on debts relative to the consigner. Bankruptcy is complicated so while I am pretty sure any remaining goods from the consignment would be returned to the original owner the proceeds from sales that were successfully made might end up in the pocket of the corporation.
Personally, I absolutely loathe consignment. It is an incredibly complex agreement with a lot of weird edge cases about deprecation of goods and the duty to seek a good price that get complex quick. If you have goods like this and can find a store that will buy your goods in bulk you should be very careful in considering how much you care about the price difference between that bulk price and the percentage they list for consignment. A single transaction is usually much cleaner and easier for both sides and in this case (trying to pay for medical costs) having the money immediately can be quite attractive.
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yeah you cant just unilaterally cancel the contract in which you agreed to hold the goods for sale, and then take possession without any reimbursement.
You either need to pay the sales price of the consigned items, or just give them back.
If you do neither, its the same exact thing as theft. Which is what they did. They took possession of the 200k lego set with no reimbursement. Just plain ol' theft.
> I have absolutely no doubts a court would consider it impossible to transfer goods under consignment to a different entity free of the burden of the consignment contract.
Reminds me of the whole "disney must pay" debacle.
The problem with consignment is that the consignor wants the maximum price but the consignee wants a quick sale because 10% of a few bucks more means very little and they have to hold the inventory.
In bankrupty a court appointed liquidator can seize assets and sell them to repay creditors. Of course none of this happened here.
bricks and minifigs is going to lose a hell of a lot more than this 10% in business
regardless of the law, it’s a very stupid move on the company’s part.
if they had half a brain they’d pay double the commission and pretend it aas internal miscommunication. $40k is cheap versus the pr hit they’re taking right now
If you look at the latest stuff from the previous owner where they recorded multiple conversations / pulled security footage... https://www.youtube.com/watch?v=zedmOopRTm0 1, they were allowed to do consignment deals, 2, when corporate took control, they said they'd take on the consignment liability, 3, BAM outright threatens them with making the legal process too expensive for them.
All of which contradicts the current corporate response