Sale on approval and sale or return — 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. 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 Article ( section 554.2201 ) and as contradicting the sale aspect of the contract within the provisions of this Article on parol or extrinsic evidence ( section 554.2202 ). [C24, 27, 31, 35, 39, § 9948; C46, 50, 54, 58, 62, §554.20; C66, 71, 73, 75, 77, 79, 81, §554.2326 ] 2000 Acts, ch 1149, §143, 187 Referred to in §554.2103 , 554.13103