N.Y. Uniform Commercial Code Law § 2-326: Sale on Approval and Sale or Return; Rights of Creditors

Section 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 for sale is to be treated as a

separate contract for sale within the statute of frauds section of this

Article (Section 2--201) and as contradicting the sale aspect of the

contract within the provisions of this Article on parol or extrinsic

evidence (Section 2--202).