<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-2-326 - Sale on approval and sale or return--Consignment sales and rights of creditors. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073219Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073219SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073219CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073219Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073219DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073219Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2073219Normal-000002 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073219000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073219SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073219SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2073219Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-326"><span class="s2073219SENU">57A-2-326</span></a><span xml:space="preserve" class="s2073219SENU">. </span><span class="s2073219CL">Sale on approval and sale or return--Consignment sales and rights of creditors.</span></p><p dir="ltr" class="s2073219Normal-000000"><span class="s2073219DefaultParagraphFont">(1) Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:</span></p><p dir="ltr" class="s2073219Normal-000001"><span class="s2073219DefaultParagraphFont">(a)    A "sale on approval" if the goods are delivered primarily for use; and</span></p><p dir="ltr" class="s2073219Normal-000001"><span class="s2073219DefaultParagraphFont">(b)    A "sale or return" if the goods are delivered primarily for resale.</span></p><p dir="ltr" class="s2073219Normal-000002"><span class="s2073219DefaultParagraphFont">(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.</span></p><p dir="ltr" class="s2073219Normal-000002"><span xml:space="preserve" class="s2073219DefaultParagraphFont">(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 (§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-201"><span class="s2073219DefaultParagraphFont">57A-2-201</span></a><span xml:space="preserve" class="s2073219DefaultParagraphFont">) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-202"><span class="s2073219DefaultParagraphFont">57A-2-202</span></a><span class="s2073219DefaultParagraphFont">).</span></p><p dir="ltr" class="s2073219Normal"><span xml:space="preserve" class="s2073219000003"> </span></p><p dir="ltr" class="s2073219Normal"><span class="s2073219SCL">Source:</span><span xml:space="preserve" class="s2073219SCL-000004"> SL 1966, ch 150, § 2-326; SDCL, §§ 57-4-64 to 57-4-67; SL 2000, ch 231, § 5.</span></p></div></body></html>