N.D. Cent. Code § 41-02-44
(2-327) Special incidents of sale on approval and sale or return
Redline — December 1, 2021 → current.View current text →
Current — January 1, 2022
As of December 1, 2021
(1) Under a sale on approval, unless otherwise agreed: Although the goods are identified to the contract the risk of loss and the title do not pass to the buyer until acceptance.
(1) Under a sale on approval, unless otherwise agreed: Although the goods are identified to the contract the risk of loss and the title do not pass to the buyer until acceptance.
(2) Use of the goods consistent with the purpose of trial is not acceptance but failure seasonably to notify the seller of election to return the goods is acceptance, and if the goods conform to the contract, acceptance of any part is acceptance of the whole.
(2) Use of the goods consistent with the purpose of trial is not acceptance but failure seasonably to notify the seller of election to return the goods is acceptance, and if the goods conform to the contract, acceptance of any part is acceptance of the whole.
(3) After due notification of election to return, the return is at the seller’s risk and expense but a merchant buyer must follow any reasonable instructions.
(3) After due notification of election to return, the return is at the seller’s risk and expense but a merchant buyer must follow any reasonable instructions.
(4) Under a sale or return, unless otherwise agreed: The option to return extends to the whole or any commercial unit of the goods while in substantially their original condition, but must be exercised seasonably.
(4) Under a sale or return, unless otherwise agreed: The option to return extends to the whole or any commercial unit of the goods while in substantially their original condition, but must be exercised seasonably.
(5) The return is at the buyer’s risk and expense.
(5) The return is at the buyer’s risk and expense.
(6) In the case of a sale on approval the risk rests on the seller until acceptance of the goods by the buyer, while in a sale or return the risk remains throughout on the buyer.
(7) Notice of election to return given by the buyer in a sale on approval is sufficient to relieve him of any further liability. Actual return by the buyer to the seller is required in the case of a sale or return contract. What constitutes due “giving” of notice, as required in “on approval” sales, is governed by the provisions on good faith and notice. “Seasonable” is used here as defined in Section 1-204. Nevertheless, the provisions of both this Article and of the contract on this point must be read with commercial reason and with full attention to good faith.
Official source: North Dakota Legislative Branch. Reproduced from public-domain North Dakota statutes; confirm against the official source for the current text. Not legal advice.