2023 Tennessee Code
Title 47 - COMMERCIAL INSTRUMENTS AND TRANSACTIONS (§§ 47-1-101 — 47-50-121)
Chapter 2 - SALES (§§ 47-2-101 — 47-2-725)
Part 3 - GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT (§§ 47-2-301 — 47-2-328)
Section 47-2-326 - Sale on approval and sale or return - Consignment sales and rights of creditors

Universal Citation:
TN Code § 47-2-326 (2023)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.

  • (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.


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