2-326 - Sale on Approval and Sale or Return; Rights of Creditors.
Section 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).