                                 CODE OF VIRGINIA

SALE ON APPROVAL AND SALE OR RETURN; RIGHTS OF CREDITORS (§ 8.2-326)

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 &#8220;sale on approval&#8221; if the goods are delivered primarily for
   use; and

   b. a &#8220;sale or return&#8221; if the goods are delivered primarily for
   resale.

2. Goods held on approval are not subject to the claims of the buyer&#8217;s
creditors until acceptance; goods held on sale or return are subject to such
claims while in the buyer&#8217;s possession.

3. Any &#8220;or return&#8221; term of a contract for sale is to be treated as a
separate contract for sale within the statute of frauds section of this title
(&#xA7; 8.2-201) and as contradicting the sale aspect of the contract within the
provisions of this title on parol or extrinsic evidence (&#xA7; 8.2-202).

HISTORY: 1964, c. 219; 2000, c. 1007.