Indiana Statutes
§ 26-1-2-326 — Sale on approval and sale or return
(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 (IC 26-1-2-201) and as contradicting the sale aspect of the contract within
the provisions of IC 26-1-2-202 on parol or extrinsic evidence.
Formerly: Acts 1963, c.317, s.2-326. As amended by
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Related
Reynolds Metals Co. v. Indiana Department of State Revenue, Gross Income Tax Division
433 N.E.2d 1 (Indiana Court of Appeals, 1982)
Associated Milk Producers, Inc. v. Indiana Department of State Revenue
512 N.E.2d 917 (Indiana Tax Court, 1987)
Nearby Sections
15
§ 26-1-1-0.3
Certain security interests considered perfected§ 26-1-1-0.5
Status of certain security interests; conditions; lapsing of perfection;
filing of financing statements§ 26-1-1-101
Short title; application§ 26-1-1-104
Construction against implicit repeal§ 26-1-1-105
Repealed§ 26-1-1-106
Remedies to be liberally administered§ 26-1-1-108
Severability