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California Commercial Code Section 2326

Legal Research Home > California Laws > Commercial Code > California Commercial Code Section 2326

2326.  (1) Unless otherwise agreed, if delivered goods may be
returned by the buyer even though they conform to the contract, the
transaction is
   (a) A "sale on approval" if the goods are delivered primarily for
use, and
   (b) A "sale or return" if the goods are delivered primarily for
resale.
   (2) Goods held on approval are not subject to the claims of the
buyer's creditors until acceptance; goods held on sale or return are
subject to such claims while in the buyer's possession.
   (3) Any "or return" term of a contract for sale is to be treated
as a separate contract for sale within the statute of frauds section
of this division (Section 2201) and as contradicting the sale aspect
of the contract within the provisions of this division on parol or
extrinsic evidence (Section 2202).
   (4) If a person delivers or consigns for sale goods which the
person used or bought for use for personal, family, or household
purposes, these goods do not become the property of the deliveree or
consignee unless the deliveree or consignee purchases and fully pays
for the goods. Nothing in this subdivision shall prevent the
deliveree or consignee from acting as the deliverer's agent to
transfer title to these goods to a buyer who pays the full purchase
price. Any payment received by the deliveree or consignee from a
buyer of these goods, less any amount which the deliverer expressly
agreed could be deducted from the payment for commissions, fees, or
expenses, is the property of the deliverer and shall not be subject
to the claims of the deliveree's or consignee's creditors.

Last modified: February 22, 2013