[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]