TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 2

UNIFORM COMMERCIAL CODE — SALES

PART 3.

GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT

28-2-326.  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; 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 chapter (section 28-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (section 28-2-202).

History:

[28-2-326, added 1967, ch. 161, sec. 2-326, p. 351; am. 2001, ch. 208, sec. 7, p. 808.]