28-2-326. 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 chapter (section 28-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (section 28-2-202).
History:
[28-2-326, added 1967, ch. 161, sec. 2-326, p. 351; am. 2001, ch. 208, sec. 7, p. 808.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 2 - UNIFORM COMMERCIAL CODE — SALES
Part 3 - GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT
Section 28-2-301 - GENERAL OBLIGATIONS OF PARTIES.
Section 28-2-302 - UNCONSCIONABLE CONTRACT OR CLAUSE.
Section 28-2-303 - ALLOCATION OR DIVISION OF RISKS.
Section 28-2-304 - PRICE PAYABLE IN MONEY, GOODS, REALTY, OR OTHERWISE.
Section 28-2-305 - OPEN PRICE TERM.
Section 28-2-306 - OUTPUT, REQUIREMENTS AND EXCLUSIVE DEALINGS.
Section 28-2-307 - DELIVERY IN SINGLE LOT OR SEVERAL LOTS.
Section 28-2-308 - ABSENCE OF SPECIFIED PLACE FOR DELIVERY.
Section 28-2-309 - ABSENCE OF SPECIFIC TIME PROVISIONS — NOTICE OF TERMINATION.
Section 28-2-310 - OPEN TIME FOR PAYMENT OR RUNNING OF CREDIT — AUTHORITY TO SHIP UNDER RESERVATION.
Section 28-2-311 - OPTIONS AND COOPERATION RESPECTING PERFORMANCE.
Section 28-2-313 - EXPRESS WARRANTIES BY AFFIRMATION, PROMISE, DESCRIPTION, SAMPLE.
Section 28-2-314 - IMPLIED WARRANTY — MERCHANTABILITY — USAGE OF TRADE.
Section 28-2-315 - IMPLIED WARRANTY — FITNESS FOR PARTICULAR PURPOSE.
Section 28-2-316 - EXCLUSION OR MODIFICATION OF WARRANTIES.
Section 28-2-317 - CUMULATION AND CONFLICT OF WARRANTIES EXPRESS OR IMPLIED.
Section 28-2-318 - THIRD PARTY BENEFICIARIES OF WARRANTIES EXPRESS OR IMPLIED.
Section 28-2-319 - F.O.B. AND F.A.S. TERMS.
Section 28-2-320 - C.I.F. AND C. & F. TERMS.
Section 28-2-322 - DELIVERY “EX-SHIP.”
Section 28-2-323 - FORM OF BILL OF LADING REQUIRED IN OVERSEAS SHIPMENT — “OVERSEAS.”
Section 28-2-324 - “NO ARRIVAL, NO SALE” TERM.
Section 28-2-325 - “LETTER OF CREDIT” TERM — “CONFIRMED CREDIT.”
Section 28-2-326 - SALE ON APPROVAL AND SALE OR RETURN — RIGHTS OF CREDITORS.
Section 28-2-327 - SPECIAL INCIDENTS OF SALE ON APPROVAL AND SALE OR RETURN.
Section 28-2-328 - SALE BY AUCTION.
Section 28-2-329 - VOLUNTARY AND UNSOLICITED SENDING OF GOODS.