1998 Minnesota Statutes

     336.2-326 Sale on approval and sale or return; 
  consignment sales and rights of creditors.  

    (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) Except as provided in subsection (3), 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) Where goods are delivered to a person for sale and such 
 person maintains a place of business dealing in goods of the 
 kind involved, under a name other than the name of the person 
 making delivery, then with respect to claims of creditors of the 
 person conducting the business the goods are deemed to be on 
 sale or return.  The provisions of this subsection are 
 applicable even though an agreement purports to reserve title to 
 the person making delivery until payment or resale or uses such 
 words as "on consignment" or "on memorandum."  However, this 
 subsection is not applicable if the person making delivery 

    (a) complies with an applicable law providing for a 
 consignor's interest or the like to be evidenced by a sign, or 

    (b) establishes that the person conducting the business is 
 generally known by the person's creditors to be substantially 
 engaged in selling the goods of others, or 

    (c) complies with the filing provisions of the article on 
 secured transactions (article 9).  

    (4) 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 article (section 336.2-201) and as 
 contradicting the sale aspect of the contract within the 
 provisions of this article on parol or extrinsic evidence 
 (section 336.2-202).  

    HIST: 1965 c 811 s 336.2-326; 1986 c 444