Arkansas Code
Part 3 - General Obligation and Construction of Contract
§ 4-2-326. Sale on approval and sale or return — Rights of creditors

(a) Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is
(1) a “sale on approval” if the goods are delivered primarily for use, and
(2) a “sale or return” if the goods are delivered primarily for resale.

(b) 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.
(c) 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 chapter (§ 4-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (§ 4-2-202).
History. Acts 1961, No. 185, § 2-326; 1983, No. 820, § 7; A.S.A. 1947, § 85-2-326; Acts 1997, No. 395, § 1; 2001, No. 1439, § 6.

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