Contracts - UCC Art 7 - Documents of Title - Definitions, Forms, Negotiation & Rights

Question 1

What effect does a document of title for stolen goods have?

Answer 1

Documents of title for stolen goods do not pass title. A thief can never pass good title.

Question 2

Define “warehouse receipt.”

Answer 2

A receipt issued by a person engaged in the business of storing goods.

Question 3

How are negotiable and nonnegotiable documents of title transferred?

Answer 3

1. Negotiable Documents of Title - through due negotiation; transfer through due negotiation by delivery or indorsement;
2. Nonnegotiable Documents of Title - transfer by assignment.

Question 4

Describe the concept of carrier’s duty of care.

Answer 4

Absolute or strict liability with some exceptions.

Question 5

List the types of documents of titles.

Answer 5

1. Bills of Lading;
2. Air Bills;
3. Warehouse Receipts;
4. Dock Warrants;
5. Others Where Document in Business Evidences Person in Possession Has Title and Right to Receive the Goods.