Fulfillment: California Court Clarifies Rule on Cataloger Fees

Bergen: The plaintiff also argued that if a good is lost or stolen in transit, the cataloger would replace the item anyway, so an insurance fee was illusory. Our answer was: not as long as the cost to replace the good about matches the actual fees charged. The fee then is a real benefit.

Dougherty: The plaintiff claimed it was a sale on approval, and as such, the insurance fee did not have any value. Under the UCC, once the cataloger delivers the good to a common carrier, the consumer owns the good. And so the fee did add value to the order.