§ 41-02-43 — (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.

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 (section 41-02-08) and as
contradicting the sale aspect of the contract within the provisions of this chapter on
parol or extrinsic evidence (section 41-02-09).