§ 57a-2-326

57A-2-326. Sale on approval and sale or return--Consignment sales and 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 chapter (§57A-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (§57A-2-202). Source: SL 1966, ch 150, §2-326; SDCL, §§57-4-64 to 57-4-67; SL 2000, ch 231, §5.