Iowa Code » Chapter 554 — UNIFORM COMMERCIAL CODE
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Iowa Code § 554.2327 (2026)

Special incidents of sale on approval and sale or return

✓ current as of July 2026
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1. Under a sale on approval unless otherwise agreed

a. although the goods are identified to the contract the risk of loss and the title do not pass to the buyer until acceptance; and

b. use of the goods consistent with the purpose of trial is not acceptance but failure seasonably to notify the seller of election to return the goods is acceptance, and if the goods conform to the contract acceptance of any part is acceptance of the whole; and

c. after due notification of election to return, the return is at the seller’s risk and expense but a merchant buyer must follow any reasonable instructions.\n\nTue Dec 09 22:02:40 2025 Iowa Code 2026, Chapter 554 (108, 4) 37 UNIFORM COMMERCIAL CODE, §554.2401\n\n 2. Under a sale or return unless otherwise agreed

a. the option to return extends to the whole or any commercial unit of the goods while in substantially their original condition, but must be exercised seasonably; and

b. the return is at the buyer’s risk and expense. [C24, 27, 31, 35, 39, §9948; C46, 50, 54, 58, 62, §554.20; C66, 71, 73, 75, 77, 79, 81, §554.2327] Referred to in §554.2509 \n

Notes of Decisions
Cited in 1 case, 1979–1979 · leading case: Seaway Candy, Inc. v. Cedar Rapids YMCA, 283 N.W.2d 315 (Iowa 1979).
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Seaway Candy, Inc. v. Cedar Rapids YMCA, 283 N.W.2d 315 (Iowa 1979). “The parties agree the case is controlled by the Uniform Commercial Code, particularly § 554.2327(2), The Code 1975, which provides in part as follows: 2.”
— Iowa Code § 554.2327(2) — 1 case
Seaway Candy, Inc. v. Cedar Rapids YMCA, 283 N.W.2d 315 (Iowa 1979). “The parties agree the case is controlled by the Uniform Commercial Code, particularly § 554.2327(2), The Code 1975, which provides in part as follows: 2.”
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