Can You Sell Cannabis on Consignment in Oklahoma?
If you are connected with the cannabis industry, then you may have heard the word consignment. It is a very common word among the people. Most of the cultivators, processors and retail purchasing managers use this word but in an appropriate way. Here, we have shared ‘What is a consignment’ and ‘what terminology we should use’. If you want to get good-quality medical marijuana, then contact a reputed dispensary.
What Is a Consignment in Business?
According to the Black’s Law Dictionary, when a third party sells an owner’s property including cloth and furniture, it is called consignment. It is an act where another person is authorized to sell your goods.
How Does It Work?
In this situation, the third-party occupies the title to the goods that the person is selling. But he or she also has the right to transfer the title to someone. You may call this third party as bailee in this matter. The bailor gives the things to the bailee for sale. Keep in mind that the bailee has few rights and responsibilities like the bailee can sue to recover damages of the property. The bailor can also sue against the bailee if the property is damaged while in the bailee’s possession.
Do People Actually Do Consignment While Selling Cannabis?
In most cases, the wholesaler and the retailer do not do any type of consignment while selling medical marijuana. Most of the time if the retailer is tight on cash, then the wholesaler sells the cannabis, writes an invoice for the product and takes the price after some days. It is not a consignment. Here, after getting the product, the retailer or dispensary purchase manager is the lawful owner. Here, they simply extend credit. But if they actually do consignment, then the bailor or the wholesaler has to provide commission after the bailee sells the product. Then the consignor takes the selling money.
Is Consignment Legal in the Cannabis Industry?
According to Oklahoma law, a Grower and a Dispensary cannot do any consignment. Keep in mind that a grower can only sell the flower to the dispensary but not to the patient. But if they are able to do consignment, then the dispensary sells the flower to the patient on behalf of the grower. Hence, a few types of consignment is not legal in the cannabis industry in Edmond, OK.
Remember that all types of consignments are not illegal in Oklahoma and if the grower hires a transportation company for transporting the medical marijuana, the transporter is a lawful holder but not title to the goods. The transportation company here acts as a broker. First, they will pick up the goods, store them in a licensed location. After that when they find a buyer, they will close the sale and remit payment to the grower.
What Term Should Be Used?
Whenever a Dispensary Purchasing Manager buys a product from the grower, they both should use the term “extend credit” instead of consignment. That would be appropriate for both of them.
Contact Us
If you want to buy good quality cannabis flowers, CBD, medical marijuana, then contact Frontier Medicine in Edmond, OK. Visit their website to know more.
**Disclaimer: This content is not the advice of a doctor; no product promoted herein is approved by the FDA to treat, cure, or prevent any disease.