Services & Solutions for Successful Equipment & Hardware Retailers!

   
Legal Forms for SouthWestern Members

       

To: SouthWestern Association Equipment Members

 

Subject: Equipment Consignments

 

Recently, we had a member contact us about providing their dealership with forms they could use when they enter into a consignment relationship with a customer.  This issue had never come up previously but as we discussed it with Jack Selzer, we determined there are more than likely many instances where dealerships work with customers to sell their equipment on a consignment basis.

 

As a result of this member’s inquiry and with assistance from Jack Selzer’s office, we have developed the necessary forms that you could and should use in your dealership when selling a customer’s equipment on consignment.

 

Forms available on this website include:

 

·         Equipment Consignment Agreement

·         Bill of Sale with added warranty language 

·         Memorandum regarding Security Interest Disclaimer Form for Use by Dealers

·         Disclaimer of Security Interest form

 

In the Memorandum, Jack Selzer explains the problem dealerships encounter when taking a piece of equipment on a trade-in when such equipment is covered by a blanket lien from the customer's lender, and he proposes a solution, i.e. dealers should use the Disclaimer of Security Interest form.  (You may already be using this form for equipment that you take in on trade.)

 

We think the same principle applies in the consignment context.  Your dealership may want to have the customer obtain a release of the security interest from its lender before the equipment is sold on a consignment basis.  If you agree and like the form, feel free to amend the form to fit your particular consignment situation.

 

Please contact your Association offices if you have any questions.

 

Sincerely,

Jeff Flora, CAE

Chief Executive Officer

 

Please note: The SouthWestern Association cannot provide legal advice. Before using any of the forms available on this website, you are advised to consult with an attorney in the state where your business is located

 

How To Join | Member Services | Index | Contact Us | Home | Who We Are | Calendar | Farm Show Site | Legislative | Newsletters
©1997-2008 SouthWestern Association,
638 West 39th Street, Kansas City, MO 64111.
(816) 561-5323, FAX: 816-561-1249
All Rights Reserved. Legal Notice
This page revised 01/14/08