UCC-Article 7: Documents of Title Flashcards
Define “warehouse receipt.”
A receipt issued by a person engaged in the business of storing goods.
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.
Describe the concept of carrier’s duty of care.
Absolute or strict liability with some exceptions.
Define the terminology “destination bill of lading.”
One to be issued at destination - place of delivery
List the types of documents of titles.
Bills of Lading; Air Bills; Warehouse Receipts; Dock Warrants; Others Where Document in Business Evidences Person in Possession Has Title and Right to Receive the Goods.
Define the terminology “through bill of lading.”
More than one carrier
Describe the concept of duty of care and right of payment regarding possessions of goods
Carriers and 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 most common documents of title.
Bills of Lading;
Warehouse Receipts.
Define “bill of lading.”
A document evidencing the receipt of goods by a carrier for shipment.
What degree of care should a warehouse company meet regarding shipment of goods?
High degree of care.
What are the effects of forgery on negotiable documents?
Defeats rights of any holder to either the document or the goods.
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 is an international document, and it runs to a named person or assigns.
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.
