Ch 8: Documents of Title Flashcards

1
Q

Which Article # of the UCC governs documents of title?

A

Article 7 of the UCC

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2
Q

Which two types of documents is the UCC Article 7 concerned with?

A
  • warehouse receipts
    • represent goods stored in a warehouse
  • bills of lading
    • represent goods that ar ebeing transported by a carrier
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3
Q

What is the duty of the common carrier?

A
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4
Q

What is a holder of a duly negotiated document of title?

A

A person who:

  • gives present value
  • takes in good faith without notice of defenses or adverse claims
  • takes the document in the regular course of business or financing
  • must obtain it in the regular course of business or financing

Such a person is like a holder in due course of commercial paper - subject to few defenses.

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5
Q

How are documents of title negotiated?

A

Like commercial paper, the procedure for negotiating a document of title depends on whether the document is a bearer or order document:

  • a bearer document is negotiated by delivery alone
  • an order document requires delivery plus a valid signature
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6
Q

What are the three transfer warranties made by a transferor of a document of title?

A
  • the document is genuine
  • the transferor has no knowledge of any fact that would impair the document’s validity or value
  • the negotiation or transfer is rightful and effective
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