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Section 11-2-326 - Sale on approval and sale or return; rights of creditors — Georgia Law | CourtGPT
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Georgia Legal Code

Section 11-2-326 - Sale on approval and sale or return; rights of creditors

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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 (Code Section 11-2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (Code Section 11-2-202).Amended by 2001 Ga. Laws 191, § 6, eff. 7/1/2001.