HRS §490:2-326
When buyers can return goods and who owns them
Read the official text at capitol.hawaii.gov ↗This section explains two types of deals where a buyer can return goods even if they are fine. If the buyer mainly uses the goods, it is a sale on approval. If the buyer mainly plans to resell them, it is a sale or return. Creditors' rights depend on which type it is.
buyerscreditors
The statute, as written — Sale on approval and sale or return; rights of creditors
A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.
(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 490:2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (section 490:2-202).
Sections this one refers to
§490:2-201 When a written contract is required for a sale of goods
§490:2-202 When written agreements can't be changed by earlier talks
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.