Current with changes from the 2024 Legislative Session
Section 2-326 - Sale on approval and sale or return(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 title (§ 2-201 ) and as contradicting the sale aspect of the contract within the provisions of this title on parole or extrinsic evidence (§ 2-202 ).