1. Consignment Services. Pursuant to the terms set forth in these Terms and Conditions, Initial, LLC (“Initial”) agrees to provide consignment services to Consignor whereby Initial markets certain items provided by Consignor (the “Consignment Items”) for sale at Initial’s store and on Initial’s website (collectively, the “Services”).
2. Consignment. Consignor represents and warrants that the Consignment Items are new, clean, and free of defects. Consignor acknowledges that Initial does not provide the Services for used items. Consignor also represents that they own the listed items herein and have the right to sell the same. Initial acknowledges and agrees that the Consignment Items shall at all times be the property of Consignor and Initial shall have no right to ownership as to the Consignment Items.
3. Consignor Account. Initial will provide a consignor portal (the “Consignor Account”) where Consignor can log in to check on the status of Consignment Items and see their account balance. Consignor is responsible for updating personal information that changes, including information found in the Consignor Account.
4. Payment for Services. Consignor agrees to pay Initial a fee for the Services an amount equal to (i) fifteen percent (15%) of the final sale value of the sneaker Consignment Items; and (ii) twenty percent (20%) of the final sale value of the apparel Consignment Items (collectively, the “Services Fee”). Consignor also agrees that Initial withholds an additional one-point five (1.5%) processing fee upon Consignor’s wishes to cash out Consignor’s current sales balance.
5. Pricing. Initial will set/allow the price of the Consignment Items based on MSRP, condition, demand, season, and year of the Consignment Items. At the discretion of Initial, the Consignment Items may be marked down or discounted based on the seasons, periodic sales, and the length of time the Consignment Items are marketed for sale. Initial reserves the right to reduce or discount the price of the Consignment Items at any time.
6. Consignment Period. At the sole discretion of Initial, the consignment period is one hundred twenty (120) days (the “Consignment Period”) from the date Consignor creates a drop-off ticket. Consignor agrees to leave the Consignment Items with Initial for the entirety of the Consignment Period. Consignor cannot list the Consignment Items anywhere (including online) during the Consignment Period. The Consignor is responsible for picking up the Consignment Items.
7. Unsold Items. On the Consignment Expiration Date, the items listed herein will enter a thirty (30) day grace period (the “Grace Period”). During this Grace Period, a Consignor may request a 30-day extension for unsold Consignment Items, however, extension requests will be granted at the sole discretion of Initial. If an extension is granted, a new Consignment Expiration Date will be reflected in the Consignor Account and all the provisions of this paragraph will apply to any extended Consignment Expiration Date.
8. Consignor Payout. It is the Consignor’s sole responsibility to check the status of the Consignor account and the status of the Consignment Items. Payment can be done through Paypal or check.
9. Taxes. Initial will charge sales tax required by state law on behalf of Consignor and report the sales tax remitted for the Consignment Items to the proper reporting jurisdiction. Initial must report Consignor’s sales if $600 or more is sold in a calendar year and Consignor will be required to complete and return a W-9 to Initial. If Consignor meets the $600 threshold and does not provide the necessary tax information, payout will be temporarily put on hold until the information is provided.
10. Unclaimed Funds. Funds from the sale of the Consignment Items must be claimed within eight (8) months of the sale. After 8 months, Initial reserves the right to convert any unclaimed funds into store credit. Twelve (12) months after the sale of the Consignment Items, store funds that have been converted as described in this paragraph will revert to Initial, at Initial’s discretion.
11. Liability. Consignor will indemnify, defend or sustain hold harmless clauses in order to protect Initial against all third-party claims or actions in the event a third-party claims ownership to any of the Consignment Items. Consignor also agrees to indemnify and release Initial for any losses, liability, claims, lawsuits proceedings or any claims arising from the sale of the Consignment Items or a third parties use of the Consignment Items. Consignor also agrees to indemnify and release Initial for any losses, liability, claims, lawsuits proceedings or any claims arising damage or loss due to theft, fire, water, vandalism, negligent handling by customers, or other adverse events. If found liable, Initial’s liability is limited to the most recent list price of the Consignment Items minus the Service Fee associated therewith.
12. Insurance. Initial will take exceptional care of the Consignment Items and has insurance coverage on the building contents; however, the Consignment Items are owned by Consignor until sold. Consignor may want to notify its insurance carrier that the Consignment Items are on consignment. Theft and damage can occur to consigned items and Initial is not responsible for this loss during the consignment period.
IN WITNESS WHEREOF, Consignor agrees to be bound by the terms and conditions set forth herein.
