(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 title (§ 2-201) and as contradicting the sale aspect of the contract within the provisions of this title on parole or extrinsic evidence (§ 2-202).
Structure Maryland Statutes
Subtitle 3 - General Obligation and Construction of Contract
Section 2-301 - General Obligations of Parties
Section 2-302 - Unconscionable Contract or Clause
Section 2-303 - Allocation or Division of Risks
Section 2-304 - Price Payable in Money, Goods, Realty, or Otherwise
Section 2-305 - Open Price Term
Section 2-306 - Output, Requirements and Exclusive Dealings
Section 2-307 - Delivery in Single Lot or Several Lots
Section 2-308 - Absence of Specified Place for Delivery
Section 2-309 - Absence of Specific Time Provisions; Notice of Termination
Section 2-310 - Open Time for Payment or Running of Credit; Authority to Ship Under Reservation
Section 2-311 - Options and Cooperation Respecting Performance
Section 2-312 - Warranty of Title and Against Infringement; Buyer's Obligation Against Infringement
Section 2-313 - Express Warranties by Affirmation, Promise, Description, Sample
Section 2-314 - Implied Warranty; Merchantability; Usage of Trade
Section 2-316 - Exclusion or Modification of Warranties
Section 2-316.1 - Limitation of Exclusion or Modification of Warranties to Consumers
Section 2-317 - Cumulation and Conflict of Warranties Express or Implied
Section 2-318 - Third Party Beneficiaries of Warranties Express or Implied
Section 2-319 - f.o.b. and f.a.s. Terms
Section 2-320 - c.i.f. and C. & F. Terms
Section 2-322 - Delivery "Ex-Ship"
Section 2-323 - Form of Bill of Lading Required in Overseas Shipment; "Overseas"
Section 2-324 - "No Arrival, No Sale" Term
Section 2-325 - "Letter of Credit" Term; "Confirmed Credit"
Section 2-326 - Sale on Approval and Sale or Return
Section 2-327 - Special Incidents of Sale on Approval and Sale or Return