355.2 -326 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 delive red 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 fo r sale is to be treated as a separate contract for sale within the statute of frauds section of this article (KRS 355.2 -201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (KRS 355. 2-202). Effective: July 1, 2001 History: Amended 2000 Ky. Acts ch. 408, sec. 160, effective July 1, 2001. -- Created 1958 Ky. Acts ch. 77, sec. 2 -326, effective July 1, 1960.
Kentucky Legal Code