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Utah · Through 2026 General Session

Utah Code § 70A-2-326: Sale on approval and sale or return -- Rights of creditors.

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Where this section sits in the code
  1. Title 70A Uniform Commercial Code
  2. Chapter 70A-2 Uniform Commercial Code - Sales
  3. Part 70A-2-3 General Obligation and Construction of Contract

(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 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).

Collected 2026-09-03T11:34:34Z. Source file · JSON

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