Sale on approval and sale or return; rights of creditors.

NRS

104.2326

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 ( NRS 104.2201 ) and as contradicting the sale aspect of the contract within the provisions of this Article on parol or extrinsic evidence ( NRS 104.2202 ).

(Added to NRS by 1965, 797 ; A 1999, 373 )