Current through L. 2024, c. 185.
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 (§ 2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (§ 2-202).Amended 1999, No. 106 (Adj. Sess.), § 7, eff. 7/1/2001.