Legal Research Home > New York Lawyer > Uniform Commercial Code > New York Uniform Commercial Code Law Section 2-326 - Sale On Approval And Sale Or Return; Rights Of Creditors.




  Section 2-326.  Sale  on  Approval  and  Sale  or  Return;  Rights  of
                    Creditors.
    (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
  Article  (Section  2--201)  and  as contradicting the sale aspect of the
  contract within the provisions of this Article  on  parol  or  extrinsic
  evidence (Section 2-202).

Last modified: August 15, 2006