As Amended
SEC. 75-2-326. Sale on approval and sale or return; consignment sales and 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 chapter (Section 75-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (Section 75-2-202).
SOURCES: Codes, 1942, § 41A:2-326; Laws, 1966, ch. 316, § 2-326, eff March 31, 1968; Laws, 2001, ch. 495, § 8, SB 2626, eff from and after Jan. 1, 2002.
PREVIOUS VERSIONS: Pre-2001