Sale on approval and sale or return - rights of creditors

4-2-326. 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 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. Source: 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. Editor's note - Colorado legislative change: There is no counterpart to subsection (5) in the uniform act. Subsection (5) was renumbered as subsection (4) in 2001.