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HAWAII STATUTES AND CODES

§490:2-326 - Sale on approval and sale or return; rights of creditors.

     §490:2-326  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 (section 490:2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (section 490:2-202). [L 1965, c 208, §2-326; HRS §490:2-326; am L 2000, c 241, §13]

 

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