Section 382-A: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 Article (Section 2-201) and as contradicting the sale aspect of the contract within the provisions of this Article on parol or extrinsic evidence (Section 2-202).
Source. 1959, 247:1, eff. July 1, 1961. 2001, 102:8, eff. July 1, 2001.