Special Incidents of Sale on Approval and Sale or Return

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Sales
  5. General Obligation and Construction of Contract
  6. Special Incidents of Sale on Approval and Sale or Return

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  1. Under a sale on approval unless otherwise agreed:
  1. Although the goods are identified to the contract the risk of loss and the title do not pass to the buyer until acceptance; and
  2. Use of the goods consistent with the purpose of trial is not acceptance but failure seasonably to notify the seller of election to return the goods is acceptance, and if the goods conform to the contract acceptance of any part is acceptance of the whole; and
  3. After due notification of election to return, the return is at the seller's risk and expense but a merchant buyer must follow any reasonable instructions.

Under a sale or return unless otherwise agreed:

The option to return extends to the whole or any commercial unit of the goods while in substantially their original condition, but must be exercised seasonably; and

The return is at the buyer's risk and expense.

(Code 1933, § 109A-2 - 327, enacted by Ga. L. 1962, p. 156, § 1.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 67 Am. Jur. 2d, Sales, §§ 465, 467.

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:315.

C.J.S.

- 77A C.J.S., Sales, § 214.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-327.

ALR.

- Duty of purchaser of goods "on trial" or "on approval" regarding notice of rejection, 78 A.L.R. 533.

Loss on goods shipped as proratable between carrier's insurer and shipper's insurer, 169 A.L.R. 666.

Duty of consignee as to valuation of goods on reshipment to consignor, 16 A.L.R.2d 866.

Reasonableness or personal judgment of buyer as test where goods are sold subject to being satisfactory to the buyer, 86 A.L.R.2d 200.

Time for return of goods sold on "sale or return" absent specific time provision in contract, 93 A.L.R.2d 342.

Risk of loss of goods in "sale or return" transaction under UCC § 2-327, 66 A.L.R.3d 190.


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