§ 6A-2-326 - Sale on approval and sale or return – rights of creditors. - Rhode Island Statutes

SECTION 6A-2-326

   § 6A-2-326  Sale on approval and sale orreturn – rights of creditors. – (1) Unless otherwise agreed, if delivered goods may be returned by the buyereven though they conform to the contract, the transaction is:

   (a) a "sale on approval" if the goods are delivered primarilyfor use; and

   (b) a "sale or return" if the goods are delivered primarilyfor resale.

   (2) Goods held on approval are not subject to the claims ofthe buyer's creditors until acceptance; goods held on sale or return aresubject to such claims while in the buyer's possession.

   (3) Any "or return" term of a contract for sale is to betreated as a separate contract for sale within the statute of frauds section ofthis chapter (§ 6A-2-201) and as contradicting the sale aspect of thecontract within the provisions of this chapter on parol or extrinsic evidence(§ 6A-2-202).