Tenn. Code Ann. § 47-2-326

Sale on approval and sale or return — Consignment sales and rights of creditors

Known as the Uniform Commercial Code

The act spans §§ 47–47 (578 sections).

Applied in 6 court decisions — leading case Robbins v. Comerica Bank-Detroit (In Re Zwagerman) (1990)

Most recently applied in In Re Music City RV, LLC (February 2010)

Acts 1963, ch. 81, § 1 (2-326); 2000, ch. 846, § 6.

How often courts cite this section

citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(1) Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:

(2) a “sale on approval” if the goods are delivered primarily for use, and

(3) a “sale or return” if the goods are delivered primarily for resale.

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.

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 (§ 47-2-201 ) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (§ 47-2-202 ).

Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.