Sec. 42a-2-326. Sale on approval and sale or return; rights of creditors.
Sec. 42a-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 section 42a-2-201 and as contradicting the sale aspect of the contract
within the provisions of section 42a-2-202.
(1959, P.A. 133, S. 2-326; P.A. 01-132, S. 140.)
History: P.A. 01-132 amended Subsec. (2) to delete "Except as otherwise provided in subsection (3)", deleted former
Subsec. (3) re claims of creditors when goods are delivered to another person for sale on consignment and renumbered
existing Subsec. (4) as Subsec. (3).
Cited. 183 C. 266.
Cited. 34 CS 599.