KRS 355.2-326: 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 fo r sale is to be treated as a separate contract for

sale within the statute of frauds section of this article (KRS 355.2 -201) and as

contradicting the sale aspect of the contract within the provisions of this article on

parol or extrinsic evidence (KRS 355.2-202).