A consignment question.

[shadroch]

Suppose you consign a book to someone and the agreed upon asking price is $10,000, with the seller getting a 10% commission.

While in the sellers care, his store burns down and is a total loss. He is fully insured and you will be paid. What does he owe you? Does he get his 10% for a book he didn't sell, or do you get the whole $10,000.

[Chaseman210]

 

If I was the owner of the book, I would probably give him the 10% since I would be getting what I asked anyways.

[shadroch]

But wouldn't that encourage him to burn his store down again

[jimjum12]

I would say he owes 90% as per agreement. GOD BLESS...

 

-jimbo(a friend of jesus) (thumbs u

[CBT]

Suppose you consign a book to someone and the agreed upon asking price is $10,000, with the seller getting a 10% commission.

While in the sellers care, his store burns down and is a total loss. He is fully insured and you will be paid. What does he owe you? Does he get his 10% for a book he didn't sell, or do you get the whole $10,000.

 

the asking price is completely hypothetical. You would be essentially forcing the insurance company to pay a price you claim you could have got. Since the insurance company is the one paying an arbitrary price, he should still get the 10%.

 

Or, you could talk to the insurance company and get your book appraised, and get 100% of whatever that is. The owner is the one making the claim, and the one telling them what the book is "worth"....

[Bird]

the book was sold, to the insurance company. 90% of insurance payment for the book

[THE_BEYONDER]

He gets his 10%

 

It's basically a case of "you break it, you buy it"

[CAHokie]

90% would be sufficient. Even though he is not brokering a sale he is making sure you get your 90% through the insurance company which I would imagine is a pain in itself.

[Speedy-D]

But wouldn't that encourage him to burn his store down again

[shadroch]

Seems fair to me.

[Primetime]

I think the owner of the book should get the full 100% since the book never sold. If it were my store that burned down, I wouldn't ask nor take the 10%.

[kav]

But he wasnt asking 100% he wanted 90% why should he get more than the agreed amount because of circumstance?

[Moondog]

I think the owner of the book should get the full 100% since the book never sold. If it were my store that burned down, I wouldn't ask nor take the 10%.

 

(thumbs u

[shadroch]

It appears the people who do the consigning think the seller should get his ten percent, while people who actually get consignments think otherwise.

Interesting.

I can see both sides of this.

[Primetime]

It appears the people who do the consigning think the seller should get his ten percent, while people who actually get consignments think otherwise.

Interesting.

I can see both sides of this.

true. I would think the 10% becomes active if a successful sale is made, not due to loss/theft. I just wouldn't feel right taking a cut if an accident happened short of a legit sale.

[gaz973]

But wouldn't that encourage him to burn his store down again

Looking at it from the other perspective, getting 100% might encourage the comic's owner to burn down the store.

[AJD]

The store owner was going to take 10% as a fee for selling the comic. He didn't sell it - i.e. the service wasn't provided - so I think the full insurance payout goes back to the owner.

[GACollectibles]

If a book is on consignment and agreed upon price to be paid is 90% then I would think it wouldn't matter what happened to the book- sold, traded, lost/damaged, purchased by consignee(which is what this scenario basically is as ell as lost/damaged), etc- the consignor would get 90%.

[jaybuck43]

Reread your consignment agreement and check for a force major clause. I put one in mine saying any and all insurance proceeds will be split in the same percentage as a sale. There's no unjust enrichment by either party.

[Columbia Comics]

I tend to agree w/the majority that a 90/10 split of the proceeds is the correct outcome.

 

However, one cannot assume that the full asking price (in this case, $10,000) will be paid by said insurance company. According to the one we use, any items lost, damaged or stolen will be appraised and assigned a value independent of the insured and that amount (minus a deductible) will be paid. The insurance company will also require proof of ownership (past purchase order, scans/images, etc.).

 

Its not as simple as "item burned down, insurance pays out asking price, split 90/10".