A contract in which a buyer takes goods primarily for resale, with a right to return any goods that fail to sell, is a sale on approval.

This question is actually false. The type of contract described is actually a Sale or Return. When negotiating a Sale or Return, it is useful to define a period in which the goods will be returned if they are not satisfactory. It is also useful to have a requirement that the goods be returned unaltered and undamaged.