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 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 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).
Amended by Chapter 252, 2000 General Session
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Last revised: Thursday, May 28, 2009