{"data":{"id":"us-tn/tenn.-code-ann.-47-2-326","jurisdiction":"us-tn","citation":"Tenn. Code Ann. § 47-2-326","heading":"Sale on approval and sale or return - Consignment sales and rights of creditors","body":"(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 (§ 47-2-201 ) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (§ 47-2-202 ). Acts 1963, ch. 81, § 1 (2-326); 2000, ch. 846, § 6.\n(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.\n(a) a \"sale on approval\" if the goods are delivered primarily for use, and\n(b) a \"sale or return\" if the goods are delivered primarily for resale.\n(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.\n(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 (§ 47-2-201 ) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (§ 47-2-202 ).","path":["TN Code","Title 47","Chapter 2"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_tn_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:26Z","sha256":"fd750bede5e555bbed4f9c073f5b6f5b11d0322bbf3a8535893d95d9d69f3fa4","source_id":"us-tn","stale":false,"prev":"us-tn/tenn.-code-ann.-47-2-325","next":"us-tn/tenn.-code-ann.-47-2-327"},"notice":"GroundRules: Original legal text. Not legal advice."}