(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 Ohio Code 1302.39

  • Contract: A legal written agreement that becomes binding when signed.

(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 the claims of the buyer’s creditor’s 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 section 1302.04 of the Revised Code and as contradicting the sale aspect of the contract within the provisions of section 1302.05 of the Revised Code.