70A-2-326 - Sale on approval and sale or return -- Rights of creditors.
70A-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 eventhough 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 untilacceptance; goods held on sale or return are subject to such claims while in the buyer'spossession.
(3) Any "or return" term of a contract for sale is to be treated as a separate contract forsale within the statute of frauds section of this chapter (Section 70A-2-201) and as contradictingthe sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence(Section 70A-2-202).
Amended by Chapter 252, 2000 General Session