(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.
Goods held on approval are not subject to the claims of the buyer's creditors untilacceptance; goods held on sale or return are subject to such claims while in the buyer's possession.
Any "or return" term of a contract for sale is to be treated as a separate contract forsale within the statute of frauds section of this article (section 4-2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (section 4-2-202).
The provisions of this section shall not apply to the placement of works of fine art onconsignment, which shall be governed by the provisions of part 1 of article 15 of title 6.
Source: L. 65: p. 1317, § 1. C.R.S. 1963: § 155-2-326. L. 82: (5) added, p. 231, § 2, effective March 25. L. 2001: Entire section amended, p. 1436, § 20, effective July 1. L. 2017: (4) amended, (HB 17-1241), ch. 163, p. 605, § 5, effective August 9.
Editor's note - Colorado legislative change: There is no counterpart to subsection (5) in the uniform act. Subsection (5) was renumbered as subsection (4) in 2001.