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Mont. Code Ann. § 30-2-326

Sale on approval and sale or return -- rights of creditors

Known as the Uniform Commercial Code

The act spans §§ 30-1-101 to 30-9A-906 (713 sections).

En

(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 ( 30-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence ( 30-2-202).

Official source: Montana Code Annotated (Montana Legislature). Reproduced from public-domain Montana statutes; confirm against the official source for the current text. Not legal advice.