47-2326. Sale on approval and sale or return; rights of creditors

A. Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:

1. A "sale on approval" if the goods are delivered primarily for use, and

2. A "sale or return" if the goods are delivered primarily for resale.

B. 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.

C. 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 47-2201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (section 47-2202).

47-2326. Sale on approval and sale or return; rights of creditors

A. Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:

1. A "sale on approval" if the goods are delivered primarily for use, and

2. A "sale or return" if the goods are delivered primarily for resale.

B. 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.

C. 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 47-2201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (section 47-2202).