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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 116757
Experience:  20+ Years of Employment Law Experience
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I have consignment items at a business being sold in

Customer Question

i have consignment items at a business being sold in california.....when the business changes hands are my consignment items at risk of becoming the property of the new owner?
thank you so very much for your answer.......
Submitted: 1 year ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If the business is changing hands, legally the new business is a successor in interest of the old business and is obligated to either honor the agreement you have with you or return your property. So you need to contact the current business by letter to list the items you have on consignment and ask them whether or not your agreement will continue on or terminate. You need to send a copy of the letter to the new business as well if you know who that is.
Technically, by law, the items remain your items and it is up to the new business if they want to continue the consignment agreement or they have to return your property. Where issues occur in these cases is where mistakes are made by the new owner in thinking those items actually belonged to the old owner and now belong to them and that is the purpose of sending the letters out NOW would help you establish.