Business Terms 1 Flashcards
Straight bill of Lading
Non-negotiable B/L used where the goods have been paid for or do not require payment (such as donations or gifts).
Under this B/L, the shipping company will deliver the shipment to its consignee on presentation of an identification.
Also called consignment bill of lading.
Bill of Lading
At its most basic, a Bill of Lading is;
- a document generated by a shipper,
- detailing a shipment of merchandise,
- giving title to the goods,
- and requiring the carrier to release the merchandise to a named party at the destination.
How many types of Bill of Lading are there?
There are two types of bill of lading;
a STRAIGHT BILL, which is issued to a named consignee that is not negotiable;
and an ORDER BILL, which is negotiable.
A QUASI-NEGOTIABLE ORDER BILL refers to the fact that if a good is obtained by fraud the person does not have the title of the goods, even though he was unaware of this fraud.
Expand on the definition of a Bill of Lading
A bill of lading is,
- a receipt for the delivery of goods,
- a contract for their carriage
- and a document of title to them.
Its terms
- describe the freight for identification purposes;
- state the name of the consignor and the provisions of the contract for shipment;
- and direct the cargo to be delivered to the order or assigns of a particular person, the consignee, at a designated location.
Which Bill of Lading is non negotiable?
a straight bill is not negotiable.
What does it mean to say that a bill of lading is negotiable?
If its terms provide that the freight is:
1. to be delivered to the bearer (or possessor) of the bill,
2. to the order of a named party,
3. or, as recognized in overseas trade, to a named person or assigns,
a bill, as a document of title, IS NEGOTIABLE.
What are the basic types of Bill of Lading?
There are two basic types of bills of lading:
- A straight bill of lading is one in which the goods are consigned to a designated party.
- An order bill is one in which the goods are consigned to the order of a named party.
This distinction is important in determining whether a bill of lading is negotiable (capable of transferring title to the goods covered under it by its delivery or endorsement).
Why do shippers use a Bill of Lading?
Carriers using all modes of transportation issue BILLS OF LADING when they undertake the transportation of cargo.
A bill of lading is, in addition to a receipt for the delivery of goods, a contract for their carriage and a document of title to them.
Its terms:
1. describe the freight for identification purposes
2. state the name of the consignor and the provisions of the contract for shipment
3. and direct the cargo to be delivered to the order or assigns of a particular person, the consignee, at a designated location.
What is a CONSIGNOR?
The consignor sends, the consignee is the receiver.
Expand on the concept of CONSIGNOR.
In a contract of carriage, the consignee is the person to whom the shipment is to be delivered whether by land, sea or air.
If sender dispatches an item to receiver via a delivery service, sender is the consignor and recipient is the consignee.
What does it mean to say that a B/L is NEGOTIABLE?
It is negotiable if it is capable of transferring title to the goods covered under it by its delivery or endorsement
Consignment
Consignment is the act of consigning, which is placing any material in the hand of another, but retaining ownership until the goods are sold or person is transferred.
This may be done for shipping, transfer of goods to auction, or for sale in a store (i.e., a consignment shop).
To consign means to .
send and therefore consignment means sending goods to another person
