(1) |
Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:
Terms Used In Utah Code 70A-2-326- Buyer: means a person who buys or contracts to buy goods. See Utah Code 70A-2-103
- Contract: A legal written agreement that becomes binding when signed.
- Contract for sale: includes both a present sale of goods and a contract to sell goods at a future time. See Utah Code 70A-2-106
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Statute: A law passed by a legislature.
(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 70A-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (Section 70A-2-202). |
Amended by Chapter 252, 2000 General Session