Question

Marcella displays her artwork in local coffee shops for sale. If a painting sells, Marcella remits a 10% fee to the owner of the coffee shop; if a painting doesn’t sell, Marcella takes it back to her studio. This arrangement is an example of:

Multiple Choice

A) A consignment arrangement.

B) A bill-and-hold arrangement.

C) A franchise arrangement.

D) A licensing arrangement involving symbolic intellectual property.

Answer 1

Option D. A licensing arrangement involving symbolic intellectual property.

Consignment Arrangement: A consignment agreement is an agreement between a consignee and consignor for the storage, sale or resale and use of the commodity. The above situation doesn't satisfies the Consignment arrangement

A bill-and-hold arrangement: A bill and hold is a type of sales arrangement that enables payment ahead of the delivery of the item. The above situation doesn't satisfies the Bill and hold arrangement

A franchise arrangement:A franchise agreement is a legally binding document that outlines a franchisor's terms and conditions for a franchisee. The above situation doesn't satisfies the Bill and hold arrangement.

Thus the Option D fits correctly cause there is licensing with owner of coffee shop to sell and the product involves symbolic intellectual property