Title: Definitions, Forms, Negotiation, & Rights

Question 1

Document of Title

Answer 1

Definition: any document, in regular course of business, proves that a person has title to and is entitled to goods

Question 2

Document of Title

Types

Answer 2

Bill of Lading

Warehouse reciept

Question 3

Document of Title

Parties

Answer 3

Issuer
Delivery Order
Consignor
Consignee

Question 4

Document of Title

Creation

Answer 4

• must have words of negotiability
• if not, parties have only contractual rights
  
  • Warehouse receipt: need location, date of issuance, order or bearer, rates, description, any liens, signature of warehousman, and statement warehouseman is owner
  • BOL: writing and adequately describe goods

Question 5

Document of Title

Duty of Care

Answer 5

Common carriers have absolute or strict liability unless:

• Act of God
• Act of public enemy
• Act of public authority
• Act of shipper (bad packing)
• Nature of goods

Question 6

Document of Title

Transfer

Answer 6

• must have title

Question 7

Document of Title

Other

Answer 7

• stolen & fraudulently signed documents of title cannot be negotiated
• carrier may deliver to consignee named on the BOL or any party designated by holder of BOL
• negotiated by delivery alone without endorsement
• “Duly Negotiated”: A holder who takes the document for value, in good faith, and without notice of any defense or claim to it.
• A carrier who, without court order, delivers goods to a party claiming the goods under a missing negotiable bill of lading is liable to any person injured by the misdelivery