§490:2-326 - Sale on approval and sale or return; rights of creditors.
§490:2-326 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 article (section 490:2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (section 490:2-202). [L 1965, c 208, §2-326; HRS §490:2-326; am L 2000, c 241, §13]