§ 554.2326 — Sale on approval and sale or return — rights of creditors

Iowa § 554.2326

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

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 554.2201) and as contradicting the
sale aspect of the contract within the provisions of this Article on parol or extrinsic evidence
(section 554.2202).

Legislative History

[C24,27,31,35,39,§9948; C46,50,54,58,62,§554.20; C66,71,73,75,77,79,81,§554.2326]