Fulfillment: California Court Clarifies Rule on Cataloger Fees

The California trial court, however, said that International Male’s contracts were not shipment contracts but sales on approval based on the cataloger’s satisfaction guarantee. And as such, the insurance fee that International Male charged was deceptive in that the cataloger bore the risk of loss until delivery. The Appellate court disagreed and said these were shipment contracts. Just because you offer a satisfaction guarantee in which a customer can return a good within 60 days, doesn’t convert the transaction from a shipment contract to a sale-on-approval contract.