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Section 7-2-326 - “Sale on Approval” and “Sale or Return — Alabama Law | CourtGPT
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Alabama Legal Code

Section 7-2-326 - “Sale on Approval” and “Sale or Return

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'(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 (Section 7-2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (Section 7-2-202).

Source: https://alison.legislature.state.al.us/code-of-alabama?section=7-2-326· Version 2026