Bill of Lading

Question 1

3 Functions

Answer 1

1. represents rights to the goods & thus can be considered a document of title
2. evidence of a contract of carriage
3. carrier’s acknowledgment of receipt of goods

Question 2

Straight

Answer 2

nonnegotiable
shipment is consigned to a specific party (generally the importer)
when merch arrives it will be shipped directly to the seller

Question 3

Order

Answer 3

negotiable
merch can be delivered to whoever presents and original b/l (provided holder has received it in good faith through due negotiation)
most typically used for LETTERS OF CREDIT
b/l protects the seller who receives 3 originals from the steamship line
b/l is a receipt and should accurately describe the merchandise
if b/l says “To Order of [Bank]” buyer has purchased with a letter of credit