LD 2245
pg. 465
Page 464 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 466 of 493
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LR 1087
Item 1

 
(a) Complies with an applicable law providing for a
consignor's interest or the like to be evidenced by a sign; or

 
(b) Establishes that the person conducting the business is
generally known by his creditors to be substantially engaged
in selling the goods of others; or

 
(c) Complies with the filing provisions of the Article on
secured transactions (Article 9).

 
(4) 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 2-201) and as
contradicting the sale aspect of the contract within the
provisions of this Article on parol or extrinsic evidence
(section 2-202).

 
Official Comment

 
1. A Both a "sale on approval" or and a "sale or return" is
distinct should be distinguished from other types of transactions
with which they frequently have frequently been confused. The
type of "sale on approval," "on trial" or "on satisfaction" dealt
A "sale on approval," sometimes also called a sale "on trial" or
"on satisfaction," deals with a contract under which the seller
undertakes a particular business risk in order to satisfy his its
prospective buyer with the appearance or performance of the goods
in question that are sold. The goods are delivered to the
proposed purchaser but they remain the property of the seller
until the buyer accepts them. The price has already been agreed.
The buyer's willingness to receive and test the goods is the
consideration for the seller's engagement to deliver and sell.
The type of "sale or return" involved herein A "sale or return,"
on the other hand, typically is a sale to a merchant whose
unwillingness to buy is overcome only by the seller's engagement
to take back the goods (or any commercial unit of goods) in lieu
of payment if they fail to be resold. A sale or return is a
present sale of goods which may be undone at the buyer's option.__
Accordingly, subsection (2) provides that goods delivered on
approval are not subject to the prospective buyer's creditors
until acceptance, and goods delivered in a sale or return are
subject to the buyer's creditors while in the buyer's possession.

 
These two transactions are so strongly delineated in practice
and in general understanding that every presumption runs against
a delivery to a consumer being a "sale or return" and


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