§ 25-2-326. Sale on approval and sale or return; rights of creditors. - North Carolina Statutes

§25‑2‑326.  Sale on approval and sale or return; rights ofcreditors.

(1)        Unless otherwiseagreed, if delivered goods may be returned by the buyer even though theyconform to the contract, the transaction is:

(a)        a "sale onapproval" if the goods are delivered primarily for use, and

(b)        a "sale orreturn" if the goods are delivered primarily for resale.

(2)        Goods held onapproval are not subject to the claims of the buyer's creditors untilacceptance; goods held on sale or return are subject to such claims while inthe buyer's possession.

(3)        Any "orreturn" term of a contract for sale is to be treated as a separatecontract 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 ofthis article on parol or extrinsic evidence (G.S. 25‑2‑202). (1965,c. 700, s. 1; 2000‑169, s. 10.)