Wisconsin Statutes
Wis. Stat. § 402.326 (2026)
Sale on approval and sale or return; rights of creditors
✓ current as of July 2026
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402.326(1)(1) Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:
402.326(2)(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.
402.326(4)(4) Any “or return” term of a contract for sale is to be treated as a separate contract for sale within s. 402.201 and as contradicting the sale aspect of the contract within s. 402.202 on parol or extrinsic evidence.
402.326(5)(5) If a person delivers or consigns for sale goods that the person used, or bought for use, for personal, family or household purposes, these goods do not become the property of the deliveree or consignee unless the deliveree or consignee purchases and fully pays for the goods. This subsection does not prevent the deliveree or consignee from acting as the deliverer’s or consignor’s agent to transfer title to these goods to a buyer who pays the full purchase price. Any payment received by the deliveree or consignee from a buyer of these goods, less any amount that the deliverer or consignor expressly agreed could be deducted from the payment for commissions, fees or expenses, is the property of the deliveror or consignor and is not subject to the claims of the deliveree’s or consignee’s creditors.
402.326 AnnotationEnumerating and discussing factors relevant to determining whether goods are delivered “for sale.” Armor All Products v. Amoco Oil Co., 194 Wis. 2d 35, 533 N.W.2d 720 (1995).
402.326 AnnotationWhether a transaction is a “sale on approval” must be determined by an objective examination of the transaction documents and the parties’ performance, rather than examination of the parties’ subjective intent. Houghton Wood Products, Inc. v. Badger Wood Products, Inc., 196 Wis. 2d 457, 538 N.W.2d 621 (Ct. App. 1995), 95-0004.
402.326 AnnotationWhen a good is used in the manufacturing process where it undergoes transformation and is subsequently resold, it is not delivered for “use” under sub. (1). Houghton Wood Products, Inc. v. Badger Wood Products, Inc., 196 Wis. 2d 457, 538 N.W.2d 621 (Ct. App. 1995), 95-0004.
Notes of Decisions
Cited in 5
cases, 1974–2012 · leading case: Armor All Prods. v. Amoco Oil Co., 533 N.W.2d 720 (Wis. 1995).
Armor All Prods. v. Amoco Oil Co., 533 N.W.2d 720 (Wis. 1995). “" Goods deemed to be on sale or *41 return are subject to the claims of creditors under sec. 402.326(2), Stats. 5 We conclude that Armor did not have a cause of action under sec.”
Liebzeit v. FVTS Acquisition Co. (In Re Wolverine Fire Apparatus Co.), 465 B.R. 808 (Bankr. E.D. Wis. 2012). “See Wis. Stat. § 402.326 (l)-(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.”
Houghton Wood Prods., Inc. v. Badger Wood Prods., Inc., 538 N.W.2d 621 (Wis. Ct. App. 1995). “comment cited in Wis. Stat. Ann. § 402.326 , para. 1 (West 1963).”
Armor All Prods. v. Amoco Oil Co., 522 N.W.2d 565 (Wis. Ct. App. 1994). “Armor had claimed that under § 402.326, STATS., it had a "common interest" in private label products that Amoco Oil Company (Amoco) warehoused at AFSCO and removed from its warehouses when *141 AFSCO declared bankruptcy.”
Clark Oil & Refining Co. v. Liddicoat, 223 N.W.2d 530 (Wis. 1974). “1 Sec. 402.326, Stats., provides: “Sale on approval and sale or return; consignment sales and rights of creditors.”
— Wis. Stat. § 402.326(1) — 2 cases
Houghton Wood Prods., Inc. v. Badger Wood Prods., Inc., 538 N.W.2d 621 (Wis. Ct. App. 1995). “comment cited in Wis. Stat. Ann. § 402.326 , para. 1 (West 1963).”
Liebzeit v. FVTS Acquisition Co. (In Re Wolverine Fire Apparatus Co.), 465 B.R. 808 (Bankr. E.D. Wis. 2012). “See Wis. Stat. § 402.326 (l)-(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.”
— Wis. Stat. § 402.326(1)(a) — 1 case
Houghton Wood Prods., Inc. v. Badger Wood Prods., Inc., 538 N.W.2d 621 (Wis. Ct. App. 1995). “comment cited in Wis. Stat. Ann. § 402.326 , para. 1 (West 1963).”
— Wis. Stat. § 402.326(2) — 2 cases
Armor All Prods. v. Amoco Oil Co., 533 N.W.2d 720 (Wis. 1995). “" Goods deemed to be on sale or *41 return are subject to the claims of creditors under sec. 402.326(2), Stats. 5 We conclude that Armor did not have a cause of action under sec.”
Houghton Wood Prods., Inc. v. Badger Wood Prods., Inc., 538 N.W.2d 621 (Wis. Ct. App. 1995). “comment cited in Wis. Stat. Ann. § 402.326 , para. 1 (West 1963).”
— Wis. Stat. § 402.326(3) — 3 cases
Armor All Prods. v. Amoco Oil Co., 533 N.W.2d 720 (Wis. 1995). “" Goods deemed to be on sale or *41 return are subject to the claims of creditors under sec. 402.326(2), Stats. 5 We conclude that Armor did not have a cause of action under sec.”
Houghton Wood Prods., Inc. v. Badger Wood Prods., Inc., 538 N.W.2d 621 (Wis. Ct. App. 1995). “comment cited in Wis. Stat. Ann. § 402.326 , para. 1 (West 1963).”
Armor All Prods. v. Amoco Oil Co., 522 N.W.2d 565 (Wis. Ct. App. 1994). “Armor had claimed that under § 402.326, STATS., it had a "common interest" in private label products that Amoco Oil Company (Amoco) warehoused at AFSCO and removed from its warehouses when *141 AFSCO declared bankruptcy.”
— Wis. Stat. § 402.326(3)(b) — 2 cases
Armor All Prods. v. Amoco Oil Co., 533 N.W.2d 720 (Wis. 1995). “" Goods deemed to be on sale or *41 return are subject to the claims of creditors under sec. 402.326(2), Stats. 5 We conclude that Armor did not have a cause of action under sec.”
Armor All Prods. v. Amoco Oil Co., 522 N.W.2d 565 (Wis. Ct. App. 1994). “Armor had claimed that under § 402.326, STATS., it had a "common interest" in private label products that Amoco Oil Company (Amoco) warehoused at AFSCO and removed from its warehouses when *141 AFSCO declared bankruptcy.”
— Wis. Stat. § 402.326(3)(c) — 1 case
Armor All Prods. v. Amoco Oil Co., 533 N.W.2d 720 (Wis. 1995). “" Goods deemed to be on sale or *41 return are subject to the claims of creditors under sec. 402.326(2), Stats. 5 We conclude that Armor did not have a cause of action under sec.”
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