Statute · New York Uniform Commercial Code

N.Y. U.C.C. Law § 2-326 — Sale on Approval and Sale or Return; Rights of Creditors

N.Y. U.C.C. Law § 2-326

Type: Statute
Source: New York Uniform Commercial Code
Jurisdiction: New York
Current through: Nov 4, 2026 (NY Senate Open Legislation)

Section 2--326. Sale on Approval and Sale or Return; Rights of

Citator

N.Y. U.C.C. Law § 2-326 — Sale on Approval and Sale or Return; Rights of Creditors is in force in the current edition of the Code, and nothing recorded condemns it.

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).