(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 (§ 47-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (§ 47-2-202).Acts 1963, ch. 81, § 1 (2-326); 2000, ch. 846, § 6.
Tennessee Legal Code