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This entry was published on 2014-09-22
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Special Incidents of Sale on Approval and Sale or Return
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 3
Section 2--327. Special Incidents of Sale on Approval and Sale or


(1) Under a sale on approval unless otherwise agreed

(a) although the goods are identified to the contract the risk of

loss and the title do not pass to the buyer until acceptance;


(b) use of the goods consistent with the purpose of trial is not

acceptance but failure seasonably to notify the seller of

election to return the goods is acceptance, and if the goods

conform to the contract acceptance of any part is acceptance

of the whole; and

(c) after due notification of election to return, the return is

at the seller's risk and expense but a merchant buyer must

follow any reasonable instructions.

(2) Under a sale or return unless otherwise agreed

(a) the option to return extends to the whole or any commercial

unit of the goods while in substantially their original

condition, but must be exercised seasonably; and

(b) the return is at the buyer's risk and expense.