Colorado Code
Part 3 - General Obligation and Construction of Contract
§ 4-2-326. Sale on Approval and Sale or Return - Rights of Creditors

Source: L. 65: p. 1317, § 1. C.R.S. 1963: § 155-2-326. L. 82: (5) added, p. 231, § 2, effective March 25. L. 2001: Entire section amended, p. 1436, § 20, effective July 1. L. 2017: (4) amended, (HB 17-1241), ch. 163, p. 605, § 5, effective August 9.
Editor's note - Colorado legislative change: There is no counterpart to subsection (5) in the uniform act. Subsection (5) was renumbered as subsection (4) in 2001.
Prior Uniform Statutory Provision: Section 19(3), Uniform Sales Act.
Changes: Completely rewritten in this and the succeeding section.
Purposes of Changes: To make it clear that:

The right to return the goods for failure to conform to the contract does not make the transaction a "sale on approval" or "sale or return" and has nothing to do with this and the following section. The present section is not concerned with remedies for breach of contract. It deals instead with a power given by the contract to turn back the goods even though they are wholly as warranted.
This section nevertheless presupposes that a contract for sale is contemplated by the parties although that contract may be of the peculiar character here described.
Where the buyer's obligation as a buyer is conditioned not on his personal approval but on the article's passing a described objective test, the risk of loss by casualty pending the test is properly the seller's and proper return is at his expense. On the point of "satisfaction" as meaning "reasonable satisfaction" where an industrial machine is involved, this Article takes no position.
Cross References:
Point 2: Article 9.
Point 3: Sections 4-2-201 and 4-2-202.
Definitional Cross References:
"Between merchants". Section 4-2-104.
"Buyer". Section 4-2-103.
"Conform". Section 4-2-106.
"Contract for sale". Section 4-2-106.
"Creditor". Section 4-1-201.
"Goods". Section 4-2-105.
"Sale". Section 4-2-106.
"Seller". Section 4-2-103.