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Iowa Code § 554.2326

Sale on approval and sale or return — rights of creditors

Known as the Uniform Commercial Code

The act spans §§ 554–554 (631 sections).

Applied in 1 court decision — leading case Midwestone Bank & Trust v. Commercial Federal Bank (2005)

Most recently applied in Midwestone Bank & Trust v. Commercial Federal Bank (October 2005)

[C24, 27, 31, 35, 39, §9948; C46, 50, 54, 58, 62, §554.20; C66, 71, 73, 75, 77, 79, 81, §554.2326] 2000 Acts, ch 1149, §143, 187

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 554.2201) and as contradicting the sale aspect of the contract within the provisions of this Article on parol or extrinsic evidence (section 554.2202).

Official source: Iowa Legislature. Reproduced from public-domain Iowa statutes; confirm against the official source for the current text. Not legal advice.