CODE OF VIRGINIA

SALE ON APPROVAL AND SALE OR RETURN; RIGHTS OF CREDITORS (§ 8.2-326)

(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 title
(§ 8.2-201) and as contradicting the sale aspect of the contract within the
provisions of this title on parol or extrinsic evidence (§ 8.2-202).

HISTORY: 1964, c. 219; 2000, c. 1007.