Arizona Laws 47-2326. Sale on approval and sale or return; rights of creditors
A. 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 Arizona Laws 47-2326
- Buyer: means a person who buys or contracts to buy goods. See Arizona Laws 47-2103
- 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 Arizona Laws 47-2106
- 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.
1. A "sale on approval" if the goods are delivered primarily for use, and
2. A "sale or return" if the goods are delivered primarily for resale.
B. 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.
C. 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 47-2201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (section 47-2202).