A contract in which a buyer takes goods primarily for resale, with a right to return any goods that fail to sell, is a sale on approval.

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A sale on approval is a contract in which a buyer takes goods primarily for their own use, with a right to return any goods that do not meet their approval. If the buyer takes goods primarily for resale, the contract is a sale on consignment.

A Contract in Which a Buyer Takes Goods Primarily for Resale