(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.

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Terms Used In Rhode Island General Laws 6A-2-326

  • Buyer: means a person who buys or contracts to buy goods. See Rhode Island General Laws 6A-2-103
  • Contract: A legal written agreement that becomes binding when signed.
  • Contract for sale: includes both a present sale of goods and a contract to sell goods at a future time. See Rhode Island General Laws 6A-2-106
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Statute: A law passed by a legislature.

(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 (§ 6A-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (§ 6A-2-202).

History of Section.
P.L. 1960, ch. 147, § 1; P.L. 2000, ch. 182, § 8; P.L. 2000, ch. 420, § 8.