N.Y. Uniform Commercial Code Law Section 2-326
Sale on Approval and Sale or Return

  • Rights of Creditors
Section 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).

Source: Section 2-326 — Sale on Approval and Sale or Return; Rights of Creditors, https://www.­nysenate.­gov/legislation/laws/UCC/2-326 (updated Sep. 22, 2014; accessed Dec. 21, 2024).

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Accessed:
Dec. 21, 2024

Last modified:
Sep. 22, 2014

§ 2-326’s source at nysenate​.gov

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