A consignment is an agreement made when goods are delivered to an agent or customer when an actual purchase has not been made, obliging the consignee to pay the consignor for the goods when sold. Article 9 of the Uniform Commercial Code (U.C.C.) specifies that it applies to consignments. "Consignment" is defined as a transaction, regardless of its form, in which a person delivers goods to a merchant for the purpose of sale and- The merchant deals in goods of that kind under a name other than the name of the person making delivery, is not an auctioneer, and is not generally known by its creditors to be substantially engaged in selling the goods of others -
With respect to each delivery, the aggregate value of the goods is $1,000 or more at the time of delivery The goods must not be consumer goods immediately before delivery - and The transaction does not create a security interest that secures an obligation.
South Dakota General Agreement between Carrier and Shipper
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