70A-2-326. Sale on approval and sale or return -- Rights of creditors.
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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