Title 11, Chapter 2, Section 326
( 11-2-326)
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 (Code Section 11-2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (Code Section 11-2-202). |