(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 7-2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (Section 7-2-202).
Structure Code of Alabama
Part 3 - General Obligation and Construction of Contract.
Section 7-2-301 - General Obligations of Parties.
Section 7-2-304 - Price Payable in Money, Goods, Realty, or Otherwise.
Section 7-2-303 - Allocation or Division of Risks.
Section 7-2-302 - Unconscionable Contract or Clause.
Section 7-2-305 - Open Price Term.
Section 7-2-306 - Output, Requirements, and Exclusive Dealings.
Section 7-2-307 - Delivery in Single Lot or Several Lots.
Section 7-2-308 - Absence of Specified Place for Delivery.
Section 7-2-309 - Absence of Specific Time Provisions; Notice of Termination.
Section 7-2-310 - Open Time for Payment or Running of Credit; Authority to Ship Under Reservation.
Section 7-2-311 - Options and Cooperation Respecting Performance.
Section 7-2-313 - Express Warranties by Affirmation, Promise, Description, Sample.
Section 7-2-314 - Implied Warranty: Merchantability; Usage of Trade; Human Blood and Tissues.
Section 7-2-315 - Implied Warranty: Fitness for Particular Purpose.
Section 7-2-316 - Exclusion or Modification of Warranties.
Section 7-2-317 - Cumulation and Conflict of Warranties Express or Implied.
Section 7-2-318 - Third-Party Beneficiaries of Warranties Express or Implied.
Section 7-2-319 - f.o.b. and f.a.s. Terms.
Section 7-2-320 - c.i.f. and C. & F. Terms.
Section 7-2-322 - Delivery "Ex-Ship".
Section 7-2-323 - Form of Bill of Lading Required in Overseas Shipment; "overseas."
Section 7-2-324 - "No Arrival, No Sale" Term.
Section 7-2-325 - "Letter of Credit" Term; "Confirmed credit."
Section 7-2-326 - "Sale on Approval" and "Sale or return."
Section 7-2-327 - Special Incidents of Sale on Approval and Sale or Return.