§25-2-326. 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 (G.S. 25-2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (G.S. 25-2-202).

(1965, c. 700, s. 1; 2000-169, s. 10.)