Section 355.2-326 - 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 (KRS 355.2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (KRS 355.2-202).Effective:7/1/2001
Amended 2000, Ky. Acts ch. 408, sec. 160, effective7/1/2001. -- Created 1958 Ky. Acts ch. 77, sec. 2-326, effective 7/1/1960.