(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 4-2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (section 4-2-202).(4) The provisions of this section shall not apply to the placement of works of fine art on consignment, which shall be governed by the provisions of part 1 of article 15 of title 6.Amended by 2017 Ch. 163, §5, eff. 8/9/2017.L. 65: p. 1317, § 1. C.R.S. 1963: § 155-2-326. L. 82: (5) added, p. 231, § 2, effective March 25. L. 2001: Entire section amended, p. 1436, § 20, effective July 1. L. 2017 Ch. 163, §5, eff. 8/9/2017.L. 65: p. 1317, § 1. C.R.S. 1963: § 155-2-326. L. 82: (5) added, p. 231, § 2, effective March 25. L. 2001: Entire section amended, p. 1436, § 20, effective July 1. L. 2017: (4) amended, (HB 17-1241), ch. 163, p. 605, § 5, effective August 9.Colorado legislative change: There is no counterpart to subsection (5) in the uniform act. Subsection (5) was renumbered as subsection (4) in 2001.
Colorado Legal Code