Multiple choice

When goods are delivered to the buyer on approval or sale or return basis, the property does not pass to buyer when

  1. he signifies his approval or acceptance to the seller

  2. he returns the goods before the expiry of fixed time

  3. he retains the goods without giving notice of rejection, if time has been fixed for return of goods

  4. he retains the goods even after expiration of a reasonable time, if time is not fixed

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 When the buyer returns the goods before expiry of fixed time, the property of goods does not pass to the buyer, but it remains with the seller. In this case the goods are not approved by the buyer so it is right answer here.