In terms of conditional sales contracts,a(n) ________ contract occurs when the seller and buyer agree that the buyer may return the goods at a later time.

A) sale-on-approval
B) sale-or-return
C) condition-on-sale contract
D) illusory
E) implied-in-law

Conditional Sales Contracts

Agreements that transfer the possession of goods from the seller to the buyer, but not legal ownership until certain conditions, typically final payment, are met.

Sale-on-approval

A transaction in which goods are delivered to a buyer with the understanding that the sale becomes final only if the buyer approves or is satisfied with the products.

Sale-or-return

A commercial arrangement where goods are delivered to a buyer who has the right to return the goods if they are not sold, within a stipulated period.