OMVIC Practice Test

What is a consignment sale?

1. Agreement between dealers

2. Vehicle auction

3. Vehicle sold by the manufacturer

4. Owner gives vehicle to dealer to sell

The correct answer is: Owner gives vehicle to dealer to sell

A consignment sale is a type of sale in which the owner of an item or product gives it to a dealer or seller to be sold on their behalf. This option is different from the other choices because it involves a direct relationship between the owner and the dealer, rather than a third party or auction setting. Option A (agreement between dealers) does not accurately describe a consignment sale, as it is a more specific type of sales arrangement. Option B (vehicle auction) also does not fully capture the concept, as a consignment sale typically does not involve bidding or competing with other buyers. Option C (vehicle sold by the manufacturer) is incorrect because a consignment sale does not involve the direct involvement of the manufacturer, who would typically sell their own product themselves. Overall, option D is the most accurate and specific description of a consignment sale.