(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 Chapter (§ 4-2-201) and as contradicting the sale aspect of the contract within the provisions of this Chapter on parol or extrinsic evidence (§ 4-2-202).
Section: Previous 4-2-315 4-2-316 4-2-317 4-2-318 4-2-319 4-2-320 4-2-321 4-2-322 4-2-323 4-2-324 4-2-325 4-2-326 4-2-327 4-2-328 NextLast modified: November 15, 2016