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This entry was published on 2014-09-22
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SECTION 2-326
Sale on Approval and Sale or Return; Rights of Creditors
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 3
Section 2--326. Sale on Approval and Sale or Return; 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
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).