Artice 7 - Documents of Title (UCC)

Question 1

Documents of Title

Answer 1

Any document that, in regular course of business, proves that the peronin possession has title to and is entitled to receive the goods

Question 2

Types of Documents of Title

Answer 2

1. Bill of Lading - document evidencing the receipt of goods by a carrier for shipment
2. Warehouse receipt - issued by a person engaged in the business of storing goods

Question 3

Issuer

Answer 3

A person who is a bailee and delivers the document to the bailor or a third person

Question 4

Delivery Order

Answer 4

An order by a bailor or 3rd person for the bailee to deliver goods

Question 5

Consignor

Answer 5

A person who delivers goods to a carrier named in a bill of lading

Question 6

Consignee

Answer 6

A person named in a bll of lading to whom or whose order the goods are to be delivered

Question 7

Negotiable Document of Title

Answer 7

1. Must have words of negotiability
2. If no language, then parties must have rights under the document
3. International docs are negotiable if they run to a named person
4. Must be in record form

Question 8

Duty of Care

Answer 8

1. Common Carriers - have absolute/strict liability for loss or damage to the good unless act of God, act of public enemy, act of public authority, act of the shipper, or inherent nature of the goods
2. Warehouse company - High degree of care.
   BOTH HAVE right to place possessory lien on goods for any storage or carrier charges not paid

Question 9

Non-negotiable document of title

Answer 9

goods are transferred by assignment, assignee acquires only title and rights of the transferor-assignor, is subject to all defenses and claims against the assignor

Question 10

Negotiable document of title

Answer 10

the holder, through negotiation, can acquire better rights than the transferor-assignor