ORS 72.3260¹
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 ORS 72.2010 (Formal requirements: statute of frauds) relating to the statute of frauds and as contradicting the sale aspect of the contract within the provisions of ORS 72.2020 (Final written expression: parol or extrinsic evidence) on parole or extrinsic evidence. [1961 c.726 §72.3260 (Sale on approval and sale or return); 1967 c.395 §1; 1993 c.756 §1; 2001 c.445 §134]

Notes of Decisions

In dispute between consignor and creditor of consignee as to priority in consigned goods, proof that creditor actually knew of consign­ment before becoming creditor is sufficient to meet require­ments of ORS 72.3260 (Sale on approval and sale or return) (3)(b). Belmont Interna­tional v. American Interna­tional, 313 Or 112, 831 P2d 15 (1992)

Chapter 72

Law Review Cita­tions

53 OLR 468-473 (1974); 58 OLR 545 (1980)

1 Legislative Counsel Committee, CHAPTER 72—Sales, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors72.­pdf (2007) (last ac­cessed Feb. 12, 2009).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 72, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­072ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information