Apparatus for dispensing and receiving articles

Apparatus and method for selectably vending videocassettes in a protective case includes storage means for storing a plurality of videocassettes each within a protective case in identifiable locations. The apparatus is characterized by mode selection means (20) for enabling operation of said apparatus among a purchase mode or a rent mode and a return mode, videocassette selection means (22) for enabling selection of a desired videocassette in the purchase mode or rent mode, access means (28) for dispensing the selected videocassette with its protective case in the purchase mode or rent mode and receiving the videocassette within its protective case in the return mode, protective case identification means (30) for receiving information representative of the identity of the protective case being returned in the return mode, and transport means (48, l00) for transporting the selected videocassette within its protective case from the storage means to the access means in the purchase mode or rent mode and transporting the protective case and its contents from the access means to any available empty location (50, 52) in the storage means in the return mode in response to the identification means receiving predetermined information with respect to the identity of the protective case, the protective case remaining in the access means in the absence of the identification means receiving said predetermined information.