OMVIC Practice Test

What must consignment agreements include?

1. An estimate of the selling price and minimum selling price

2. A promise to sell within a specified timeframe

3. A guarantee of vehicle condition

4. Permission for the dealer to use the vehicle for personal tasks

The correct answer is: An estimate of the selling price and minimum selling price

Consignment agreements are legal contracts that outline the terms and conditions of selling a vehicle on behalf of the owner. These agreements typically include the estimated selling price and the minimum selling price that the owner is willing to accept. This is important because it sets clear expectations for the owner and the dealer. Option B is incorrect because there is no promise to sell within a specified timeframe in a consignment agreement. Option C is also incorrect because while some agreements may include guarantees for vehicle condition, it is not a requirement for all consignment agreements. Option D is incorrect because the dealer does not need permission to use the vehicle for personal tasks, but rather for the purpose of selling it. Therefore, the most important information that must be included in a consignment agreement is the estimated and minimum selling price to protect both the owner's and dealer's interests.