(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) Except as provided in subsection (3), 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) Where goods are delivered to a person for sale and such person maintains a place of business at which he deals in goods of the kind involved, under a name other than the name of the person making delivery, then with respect to claims of creditors of the person conducting the business the goods are deemed to be on sale or return. The provisions of this subsection are applicable even though an agreement purports to reserve title to the person making delivery until payment or resale or uses such words as "on consignment" or "on memorandum." However, this subsection is not applicable if the person making delivery
(a) complies with an applicable law providing for a consignor's interest or the like to be evidenced by a sign, or
(b) establishes that the person conducting the business is generally known by his creditors to be substantially engaged in selling the goods of others, or
(c) complies with the filing provisions of the chapter on secured transactions (Title 36, Chapter 9).
(4) 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 36-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (Section 36-2-202).
HISTORY: 1962 Code Section 10.2-326; 1966 (54) 2716.
Structure South Carolina Code of Laws
Chapter 2 - Commercial Code - Sales
Section 36-2-101. Short title.
Section 36-2-102. Scope; certain security and other transactions excluded from this Chapter.
Section 36-2-103. Definitions and index of definitions.
Section 36-2-104. Definitions: "Merchant"; "between merchants"; "financing agency".
Section 36-2-105. Definitions: transferability; "goods"; "future" goods; "lot"; "commercial unit".
Section 36-2-107. Goods to be severed from realty; recording.
Section 36-2-201. Formal requirements; statute of frauds.
Section 36-2-202. Final written expression; parol or extrinsic evidence.
Section 36-2-203. Seals inoperative.
Section 36-2-204. Formation in general.
Section 36-2-205. Firm offers.
Section 36-2-206. Offer and acceptance in formation of contract.
Section 36-2-207. Additional terms in acceptance or confirmation.
Section 36-2-208. Repealed by 2014 Act No. 213, Section 46, eff October 1, 2014.
Section 36-2-209. Modification, rescission and waiver.
Section 36-2-210. Delegation of performance; assignment of rights.
Section 36-2-301. General obligations of parties.
Section 36-2-302. Unconscionable contract or clause.
Section 36-2-303. Allocation or division of risks.
Section 36-2-304. Price payable in money, goods, realty, or otherwise.
Section 36-2-305. Open price term.
Section 36-2-306. Output, requirements and exclusive dealings.
Section 36-2-307. Delivery in single lot or several lots.
Section 36-2-308. Absence of specified place for delivery.
Section 36-2-309. Absence of specific time provisions; notice of termination.
Section 36-2-310. Open time for payment or running of credit; authority to ship under reservation.
Section 36-2-311. Options and cooperation respecting performance.
Section 36-2-313. Express warranties by affirmation, promise, description, sample.
Section 36-2-314. Implied warranty; merchantability; usage of trade.
Section 36-2-315. Implied warranty: Fitness for particular purpose.
Section 36-2-316. Exclusion or modification of warranties.
Section 36-2-317. Cumulation and conflict of warranties express or implied.
Section 36-2-318. Third party beneficiaries of warranties express or implied.
Section 36-2-319. F.O.B. and F.A.S. terms.
Section 36-2-320. C.I.F. and C. & F. terms.
Section 36-2-322. Delivery "ex-ship".
Section 36-2-323. Form of bill of lading required in overseas shipment; "overseas".
Section 36-2-324. "No arrival, no sale" term.
Section 36-2-325. "Letter of credit" term; "confirmed credit".
Section 36-2-326. Sale on approval and sale or return; consignment sales and rights of creditors.
Section 36-2-327. Special incidents of sale on approval and sale or return.
Section 36-2-328. Sale by auction.
Section 36-2-401. Passing of title; reservation for security; limited application of this section.
Section 36-2-402. Rights of seller's creditors against sold goods.
Section 36-2-403. Power to transfer; good faith purchase of goods; "entrusting".
Section 36-2-501. Insurable interest in goods; manner of identification of goods.
Section 36-2-502. Buyer's right to goods on seller's insolvency.
Section 36-2-503. Manner of seller's tender of delivery.
Section 36-2-504. Shipment by seller.
Section 36-2-505. Seller's shipment under reservation.
Section 36-2-506. Rights of financing agency.
Section 36-2-507. Effect of seller's tender; delivery on condition.
Section 36-2-508. Cure by seller of improper tender or delivery; replacement.
Section 36-2-509. Risk of loss in the absence of breach.
Section 36-2-510. Effect of breach on risk of loss.
Section 36-2-511. Tender of payment by buyer; payment by check.
Section 36-2-512. Payment by buyer before inspection.
Section 36-2-513. Buyer's right to inspection of goods.
Section 36-2-514. When documents deliverable on acceptance; when on payment.
Section 36-2-515. Preserving evidence of goods in dispute.
Section 36-2-601. Buyer's rights on improper delivery.
Section 36-2-602. Manner and effect of rightful rejection.
Section 36-2-603. Merchant buyer's duties as to rightfully rejected goods.
Section 36-2-604. Buyer's options as to salvage of rightfully rejected goods.
Section 36-2-605. Waiver of buyer's objections by failure to particularize.
Section 36-2-606. What constitutes acceptance of goods.
Section 36-2-608. Revocation of acceptance in whole or in part.
Section 36-2-609. Right to adequate assurance of performance.
Section 36-2-610. Anticipatory repudiation.
Section 36-2-611. Retraction of anticipatory repudiation.
Section 36-2-612. "Installment contract"; breach.
Section 36-2-613. Casualty to identified goods.
Section 36-2-614. Substituted performance.
Section 36-2-615. Excuse by failure of presupposed conditions.
Section 36-2-616. Procedure on notice claiming excuse.
Section 36-2-701. Remedies for breach of collateral contracts not impaired.
Section 36-2-702. Seller's remedies on discovery of buyer's insolvency.
Section 36-2-703. Seller's remedies in general.
Section 36-2-705. Seller's stoppage of delivery in transit or otherwise.
Section 36-2-706. Seller's resale including contract for resale.
Section 36-2-707. "Person in the position of a seller".
Section 36-2-708. Seller's damages for nonacceptance or repudiation.
Section 36-2-709. Action for the price.
Section 36-2-710. Seller's incidental damages.
Section 36-2-711. Buyer's remedies in general; buyer's security interest in rejected goods.
Section 36-2-712. "Cover"; buyer's procurement of substitute goods.
Section 36-2-713. Buyer's damages for nondelivery or repudiation.
Section 36-2-714. Buyer's damages for breach in regard to accepted goods.
Section 36-2-715. Buyer's incidental and consequential damages.
Section 36-2-716. Buyer's right to specific performance or replevin.
Section 36-2-717. Deduction of damages from the price.
Section 36-2-718. Liquidation or limitation of damages; deposits.
Section 36-2-719. Contractual modification or limitation of remedy.
Section 36-2-720. Effect of "cancellation" or "rescission" on claims for antecedent breach.
Section 36-2-721. Remedies for fraud.
Section 36-2-722. Who can sue third parties for injury to goods.
Section 36-2-723. Proof of market price; time and place.
Section 36-2-724. Admissibility of market quotations.
Section 36-2-725. Statute of limitations in contracts for sale.
Section 36-2-801. Definitions.
Section 36-2-802. Personal jurisdiction based upon enduring relationship.
Section 36-2-803. Personal jurisdiction based upon conduct.
Section 36-2-804. Service outside the State.
Section 36-2-805. Other bases of jurisdiction unaffected.
Section 36-2-806. Manner and proof of service.
Section 36-2-807. Individuals eligible to make service.