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JAMB Commerce 2014 Question 45

Question 45

Wholesale Trade

The difference between a factor and a broker is that the former

  1. A.is licensed to sell goods on auction.
  2. B.has a lien on the goods he possesses.
  3. C.is not in possession of the goods.
  4. D.cannot sell in his own name.
Show the answer and explanation

Answer: B (has a lien on the goods he possesses.)

Explanation

A factor holds the goods and can keep them until he is paid (a lien); a broker never has possession.