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Simple English definitions for legal terms
merchandise broker
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A quick definition of merchandise broker:
A merchandise broker is a person who helps sell goods without actually possessing them. They act as a middleman between buyers and sellers, negotiating deals and contracts. They are different from factors because they do not have physical possession of the goods. Merchandise brokers are agents with limited powers and are compensated for their services.
A more thorough explanation:
Definition: A merchandise broker is an agent who negotiates the sale of merchandise without possessing it. They act as intermediaries between buyers and sellers, but do not have possession of the goods.
Examples: A company that produces clothing hires a merchandise broker to sell their products to retailers. The broker negotiates the terms of the sale and takes a commission on the transaction. Another example is a food broker who represents multiple food manufacturers and sells their products to grocery stores and restaurants.
Explanation: Merchandise brokers are hired to sell products on behalf of manufacturers or suppliers. They do not take possession of the goods, but negotiate the terms of the sale and take a commission on the transaction. The examples illustrate how merchandise brokers act as intermediaries between buyers and sellers, negotiating the terms of the sale and taking a commission on the transaction.