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 (30-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (30-2-202).
| EnactedEn. SectionSec. 2-326, ChapterCh. 264, Laws ofL. 1963 |
| Revised Codes of MontanaR.C.M. 1947, 87A-2-326 |
| AmendedAmd. SectionSec. 134, ChapterCh. 305, Laws ofL. 1999 (SB 153 - Halligan, Mike (D) SD 34) |