Consignors: What If Your Customer Goes Bankrupt?

Law360, New York (November 17, 2008, 12:00 AM EST) -- Bankruptcy is back. If economic forecasters are correct, the filings will include big box and large retailers, posing big problems for their suppliers.

Even in bad economic times, large retailers have considerable leverage over the supply chain and can practically dictate terms to some of their suppliers. These terms may include supplying on consignment.

The advantages of consignment to the retailer are obvious - payment is not due to the supplier until the goods are sold. Cash being a precious commodity to any retailer, stocking on...
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