Consignment sales

[jrara]

Hi all,

I had a question.

I put a few pistols on consignment at a local shop.

Just wondering if that would count against my 5 per year PPT count?

[Nardo1895]

This is probably a question for DOJ. FFLs don't enforce this rule.

From what little I know, you are limited to 5 transactions. A transaction can have an unlimited number of firearms. So if you sold 5 firearms to 5 buyers as PPTs you would hit your limit. If you sold all 5 to one buyer in one PPT that would only count as one.

Maybe others have additional insights.

[SkyHawk]

This is a better question for the legal/CA Laws subforum.

On the one hand, consignments are typically processed as a PPT. However the DROS are noted as being consignments IIRC.

On the other hand, you are asking the FFL to do the marketing and selling. The FFL even collects sales tax. And if you want the gun back, you have to DROS it. This is all very different than a PPT.

What that all means for the personal sales limit would make for a good legal discussion.

[M1NM]

Yes you have transferred them to the FFL - so that is one transaction for all the guns. Now how are they listed in the FFLs bound book? As his or in trust/escrow under your name? If you end up signing PPT papers for each then DOJ will see them as individual transactions.
Consignment is nothing more than you adding inventory to an FFLs stock with no payment from him until he sells it. You are his business partner. You have provided him product and when/if he sells it he will pay you a greatly discounted percentage of what he sold it for.

[SkyHawk]

Yes you have transferred them to the FFL - so that is one transaction for all the guns. Now how are they listed in the FFLs bound book? As his or in trust/escrow under your name? If you end up signing PPT papers for each then DOJ will see them as individual transactions.
Consignment is nothing more than you adding inventory to an FFLs stock with no payment from him until he sells it. You are his business partner. You have provided him product and when/if he sells it he will pay you a greatly discounted percentage of what he sold it for.

True - but that does not work for off roster / not roster exempt handguns. And that is where the action is, and usually the only chance you have at not taking a bath on the sale. Although now may be a good time to consign other things like desirable and hard to get shotguns or rifles.