[Previous] [Next]

§12A-2-326.


§12A-2-326.
   
   (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) Except as provided in subsection (3), 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) Where goods are delivered to a person for sale and such person
   maintains a place of business at which he deals in goods of the kind
   involved, under a name other than the name of the person making
   delivery, then with respect to claims of creditors of the person
   conducting the business the goods are deemed to be on sale or return.
   The provisions of this subsection are applicable even though an
   agreement purports to reserve title to the person making delivery
   until payment or resale or uses such words as "on consignment" or "on
   memorandum". However, this subsection is not applicable if the person
   making delivery
   
   (a) complies with an applicable law providing for a consignor's
   interest or the like to be evidenced by a sign, or
   
   (b) establishes that the person conducting the business is generally
   known by his creditors to be substantially engaged in selling the
   goods of others, or
   
   (c) complies with the filing provisions of the article on Secured
   Transactions (Article 9).
   
   (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).
   

[Previous] [Next]