UCC - Article 7 Flashcards
What are the effects of forgery on negotiable documents?
It defeats the rights of any holder to either the document or the goods.
Define “warehouse receipt.”
A receipt issued by a person engaged in the business of storing goods
Describe the concept of duty of care and right of payment regarding possessions of goods.
- )Carriers and the warehouse must exercise care over the goods in their possession.
- )Warehouses and carriers can place possessory liens on the goods to get payment
List the types of documents of titles
- )Bills of lading
- )Air bills
- )Warehouse receipts
- )Dock warrants
- )Others where document in business evidences that the person in possession has title and right to receive the goods
List the most common documents of title
- )Bills of lading
2. )Warehouse receipts
Describe the concept of carrier’s duty of care
Absolute or strict liability with some exceptions
How are negotiable and nonnegotiable documents of title transferred?
- )Negotiable documents of title—through due negotiation; transfer through due negotiation by delivery or indorsement
- )Nonnegotiable documents of title—transfer by assignment
Define “bill of lading.”
A document evidencing the receipt of goods by a carrier for shipment
What are the requirements that must be met in a document of title for it to be negotiable?
- )By its terms, the goods are to be delivered to the bearer or order of the consignee or person to whom delivery is to be made.
- )If it is an international document, and it runs to a named person or assigns
Define the term “through bill of lading.”
More than one carrier
What effect does a document of title for stolen goods have?
Documents of title for stolen goods do not pass title. A thief can never pass good title
What degree of care should a warehouse company meet regarding shipment of goods?
High degree of care
Define the term “destination bill of lading.”
One to be issued at destination (i.e., place of delivery)
