§ 2-326 — Sale on Approval and Sale or Return; Rights of Creditors

Section 2--326. Sale on Approval and Sale or Return; Rights of\n Creditors.\n (1) Unless otherwise agreed, if delivered goods may be returned by the\nbuyer even though they conform to the contract, the transaction is\n (a) a "sale on approval" if the goods are delivered primarily for\n use, and\n (b) a "sale or return" if the goods are delivered primarily for\n resale.\n (2) Goods held on approval are not subject to the claims of the\nbuyer's creditors until acceptance; goods held on sale or return are\nsubject to such claims while in the buyer's possession.\n (3) Any "or return" term of a contract for sale is to be treated as a\nseparate contract for sale within the statute of frauds section of this\nArticle (Section 2--201) and as contradicting the sale aspect of the\ncontract within the provisions of this Article on parol or extrinsic\nevidence (Section 2--202).\n