Sale on approval and sale or return; rights of creditors

Checkout our iOS App for a better way to browser and research.

§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.  

[PL 1999, c. 699, Pt. B, §8 (RP); PL 1999, c. 699, Pt. B, §28 (AFF).]

(3). 

[PL 1999, c. 699, Pt. B, §8 (RP); PL 1999, c. 699, Pt. B, §28 (AFF).]

(4).  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).  

SECTION HISTORY

PL 1999, c. 699, §B8 (AMD). PL 1999, c. 699, §B28 (AFF).


Download our app to see the most-to-date content.