§ 4-2-326 - Sale on approval and sale or return -- Rights of creditors. - Arkansas Statutes

4-2-326. 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 Chapter ( 4-2-201) and as contradicting the sale aspect of the contract within the provisions of this Chapter on parol or extrinsic evidence ( 4-2-202).