Utah § 70A-2-326 Sale on approval and sale or return -- Rights of creditors.

Utah Statutes

§ 70A-2-326 — Sale on approval and sale or return -- Rights of creditors.

Utah § 70A-2-326

Title 70AUniform Commercial Code

Ch. 70A-2Uniform Commercial Code - Sales

Part 70A-2-3General Obligation and Construction of Contract

This text of Utah § 70A-2-326 (Sale on approval and sale or return -- Rights of creditors.) is published on Counsel Stack Legal Research, covering Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Utah Code Ann. § 70A-2-326 (2026).

Text

(1)Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:

(1)(a) a "sale on approval" if the goods are delivered primarily for use; and

(1)(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 70A-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (Section 70A-2-202).

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(1) Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:

(1)(a) a "sale on approval" if the goods are delivered primarily for use; and
(1)(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 70A-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (Section 70A-2-202).