§ 326 - Priority of security interests created by new debtor - Vermont Statutes

§ 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 2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (Section 2-202). (Amended 1999, No. 106 (Adj. Sess.), § 7, eff. July 1, 2001.)