Sale on approval and sale or return--rights of creditors.
400.2-326. (1) Unless otherwise agreed, if delivered goods may bereturned by the buyer even though they conform to the contract, thetransaction is
(a) a "sale on approval" if the goods are delivered primarily foruse, and
(b) a "sale or return" if the goods are delivered primarily forresale.
(2) Goods held on approval are not subject to the claims of thebuyer's creditors until acceptance; goods held on sale or return aresubject to such claims while in the buyer's possession.
(3) Any "or return" term of a contract for sale is to be treated as aseparate contract for sale within the statute of frauds section of thisarticle (section 400.2-201) and as contradicting the sale aspect of thecontract within the provisions of this article on parol or extrinsicevidence (section 400.2-202).
(L. 1963 p. 503 § 2-326, A.L. 2001 S.B. 288)
Effective 7-01-01
(1974) Where car dealer left used cars with another dealer to be sold on commission and did not post signs or establish general knowledge that selling dealer was acting as his agent and failed to file, the consigned cars were subject to claim of selling dealer's creditors. Weidinger Chevrolet, Inc. v. Universal C.I.T. Corp. (C.A. Mo.), 501 F.2d 459.
(1977) Held, fuel sold on an agreement that title passed to service station operator when pumped through computing pumps does not come under this section. Stewart v. Brown (A.), 546 S.W.2d 204.
(1977) Term "saleable" means "marketable" not "undamaged". When change in plumbing code would have required changes in dishwashers to comply with code they were not "saleable". Intertherm, Inc. v. Coronet Imperial Corp. (A.), 558 S.W.2d 344.
Sale on approval and sale or return--rights of creditors.
400.2-326. (1) Unless otherwise agreed, if delivered goods may bereturned by the buyer even though they conform to the contract, thetransaction is
(a) a "sale on approval" if the goods are delivered primarily foruse, and
(b) a "sale or return" if the goods are delivered primarily forresale.
(2) Goods held on approval are not subject to the claims of thebuyer's creditors until acceptance; goods held on sale or return aresubject to such claims while in the buyer's possession.
(3) Any "or return" term of a contract for sale is to be treated as aseparate contract for sale within the statute of frauds section of thisarticle (section 400.2-201) and as contradicting the sale aspect of thecontract within the provisions of this article on parol or extrinsicevidence (section 400.2-202).
(L. 1963 p. 503 § 2-326, A.L. 2001 S.B. 288)
Effective 7-01-01
(1974) Where car dealer left used cars with another dealer to be sold on commission and did not post signs or establish general knowledge that selling dealer was acting as his agent and failed to file, the consigned cars were subject to claim of selling dealer's creditors. Weidinger Chevrolet, Inc. v. Universal C.I.T. Corp. (C.A. Mo.), 501 F.2d 459.
(1977) Held, fuel sold on an agreement that title passed to service station operator when pumped through computing pumps does not come under this section. Stewart v. Brown (A.), 546 S.W.2d 204.
(1977) Term "saleable" means "marketable" not "undamaged". When change in plumbing code would have required changes in dishwashers to comply with code they were not "saleable". Intertherm, Inc. v. Coronet Imperial Corp. (A.), 558 S.W.2d 344.
Sale on approval and sale or return--rights of creditors.
400.2-326. (1) Unless otherwise agreed, if delivered goods may bereturned by the buyer even though they conform to the contract, thetransaction is
(a) a "sale on approval" if the goods are delivered primarily foruse, and
(b) a "sale or return" if the goods are delivered primarily forresale.
(2) Goods held on approval are not subject to the claims of thebuyer's creditors until acceptance; goods held on sale or return aresubject to such claims while in the buyer's possession.
(3) Any "or return" term of a contract for sale is to be treated as aseparate contract for sale within the statute of frauds section of thisarticle (section 400.2-201) and as contradicting the sale aspect of thecontract within the provisions of this article on parol or extrinsicevidence (section 400.2-202).
(L. 1963 p. 503 § 2-326, A.L. 2001 S.B. 288)
Effective 7-01-01
(1974) Where car dealer left used cars with another dealer to be sold on commission and did not post signs or establish general knowledge that selling dealer was acting as his agent and failed to file, the consigned cars were subject to claim of selling dealer's creditors. Weidinger Chevrolet, Inc. v. Universal C.I.T. Corp. (C.A. Mo.), 501 F.2d 459.
(1977) Held, fuel sold on an agreement that title passed to service station operator when pumped through computing pumps does not come under this section. Stewart v. Brown (A.), 546 S.W.2d 204.
(1977) Term "saleable" means "marketable" not "undamaged". When change in plumbing code would have required changes in dishwashers to comply with code they were not "saleable". Intertherm, Inc. v. Coronet Imperial Corp. (A.), 558 S.W.2d 344.
