Asked by America Becerra on Jul 19, 2024

verifed

Verified

If the goods in the possession of a bailee are not covered by a negotiable warehouse receipt,then the seller must:

A) provide a receipt to the buyer.
B) notify the bailee that it has sold the goods to the buyer and obtain the bailee's consent to hold the goods.
C) authorize the goods to be held for the buyer.
D) tender the goods to the buyer.

Negotiable Warehouse Receipt

A document used in the trading of stored goods which proves the holder is entitled to take possession of the goods, and it is transferable by endorsement.

Bailee's Consent

the agreement or permission given by a bailee, a person or entity in temporary possession of another's property, to perform a certain action with or pertaining to that property.

  • Acquire knowledge about the obligations related to delivery and the peril of loss in sales dealings.
verifed

Verified Answer

OC
Organic ChemistJul 20, 2024
Final Answer :
B
Explanation :
If the goods in the possession of a bailee are not covered by a negotiable warehouse receipt,then the seller must notify the bailee that it has sold the goods to the buyer and must obtain the bailee's consent to hold the goods for delivery to the buyer or release the goods to the buyer.