Question

When does a seller retain ownership of the goods notwithstanding its shipment to the buyer, or delivery to a carrier or bailee.

A) Payment in full
B) When the buyer agrees to the seller's terms
C) When the seller communicates its intent to retain ownership
D) Upon shipment or delivery of goods

Answer 1

Retention of ownership allows a seller to retain ownership of goods even after shipment or delivery until a specific condition is met.

Step-by-step explanation:

When a seller retains ownership of goods even after shipment to the buyer or delivery to a carrier or bailee, it is referred to as retention of ownership. This means that the seller still legally owns the goods until a specific condition is met.

One common condition for the seller to retain ownership is payment in full. In this case, the seller will retain ownership until the buyer has paid the full amount for the goods.

Another condition is when the seller communicates its intent to retain ownership. This means that the seller explicitly states that they will retain ownership until certain terms are met, such as the buyer performing a specific action or meeting certain obligations.