Table of Contents
Sec. 42a-7-101. Short title: Uniform Commercial CodeÚendashÛDocuments of Title.
Sec. 42a-7-102. Definitions and index of definitions.
Sec. 42a-7-103. Relation of article to treaty, statute, tariff, classification or regulation.
Sec. 42a-7-104. Negotiable and nonnegotiable warehouse receipt, bill of lading or other
document of title.
Sec. 42a-7-105. Construction against negative implication.
Sec. 42a-7-201. Who may issue a warehouse receipt; storage under government bond.
Sec. 42a-7-202. Form of warehouse receipt; essential terms; optional terms.
Sec. 42a-7-203. Liability for nonreceipt or misdescription.
Sec. 42a-7-204. Duty of care; contractual limitation of warehouseman's liability.
Sec. 42a-7-205. Title under warehouse receipt defeated in certain cases.
Sec. 42a-7-206. Termination of storage at warehouseman's option.
Sec. 42a-7-207. Goods must be kept separate; fungible goods.
Sec. 42a-7-208. Altered warehouse receipts.
Sec. 42a-7-209. Lien of warehouseman.
Sec. 42a-7-210. Enforcement of warehouseman's lien.
Sec. 42a-7-301. Liability for nonreceipt or misdescription; "said to contain"; "shipper's
load and count"; improper handling.
Sec. 42a-7-302. Through bills of lading and similar documents.
Sec. 42a-7-303. Diversion; reconsignment; change of instructions.
Sec. 42a-7-304. Bills of lading in a set.
Sec. 42a-7-305. Destination bills.
Sec. 42a-7-306. Altered bills of lading.
Sec. 42a-7-307. Lien of carrier.
Sec. 42a-7-308. Enforcement of carrier's lien.
Sec. 42a-7-309. Duty of care; contractual limitation of carrier's liability.
Sec. 42a-7-401. Irregularities in issue of receipt or bill or conduct of issuer.
Sec. 42a-7-402. Duplicate receipt or bill; overissue.
Sec. 42a-7-403. Obligation of warehouseman or carrier to deliver; excuse.
Sec. 42a-7-404. No liability for good faith delivery pursuant to receipt or bill.
Sec. 42a-7-501. Form of negotiation and requirement of "due negotiation".
Sec. 42a-7-502. Rights acquired by due negotiation.
Sec. 42a-7-503. Document of title to goods defeated in certain cases.
Sec. 42a-7-504. Rights acquired in the absence of due negotiation; effect of diversion;
seller's stoppage of delivery.
Sec. 42a-7-505. Endorser not a guarantor for other parties.
Sec. 42a-7-506. Delivery without endorsement: right to compel endorsement.
Sec. 42a-7-507. Warranties on negotiation or transfer of receipt or bill.
Sec. 42a-7-508. Warranties of collecting bank as to documents.
Sec. 42a-7-509. Receipt or bill: When adequate compliance with commercial contract.
Sec. 42a-7-601. Lost and missing documents.
Sec. 42a-7-602. Attachment of goods covered by a negotiable document.
Sec. 42a-7-603. Conflicting claims; interpleader.
GENERAL
Sec. 42a-7-101. Short title: Uniform Commercial Code−Documents of Title.
This article shall be known and may be cited as "Uniform Commercial Code−Documents
of Title". Sec. 42a-7-102. Definitions and index of definitions. (1) In this article, unless
the context otherwise requires: (a) "Bailee" means the person who by a warehouse
receipt, bill of lading or other document of title acknowledges possession of goods and
contracts to deliver them. (b) "Consignee" means the person named in a bill to whom
or to whose order the bill promises delivery. (c) "Consignor" means the person named in
a bill as the person from whom the goods have been received for shipment. (d) "Delivery
order" means a written order to deliver goods directed to a warehouseman, carrier or
other person who in the ordinary course of business issues warehouse receipts or bills
of lading. (e) "Document" means document of title as defined in the general definitions
in section 42a-1-201. (f) "Goods" means all things which are treated as movable for the
purposes of a contract of storage or transportation. (g) "Issuer" means a bailee who
issues a document except that in relation to an unaccepted delivery order it means the
person who orders the possessor of goods to deliver. Issuer includes any person for whom
an agent or employee purports to act in issuing a document if the agent or employee has
real or apparent authority to issue documents, notwithstanding that the issuer received
no goods or that the goods were misdescribed or that in any other respect the agent or
employee violated his instructions. (h) "Warehouseman" is a person engaged in the
business of storing goods for hire. Sec. 42a-7-103. Relation of article to treaty, statute, tariff, classification or
regulation. To the extent that any treaty or statute of the United States, regulatory
statute of this state or tariff, classification or regulation filed or issued pursuant thereto
is applicable, the provisions of this article are subject thereto. Sec. 42a-7-104. Negotiable and nonnegotiable warehouse receipt, bill of lading
or other document of title. (1) A warehouse receipt, bill of lading or other document
of title is negotiable (a) if by its terms the goods are to be delivered to bearer or to the
order of a named person; or (b) where recognized in overseas trade, if it runs to a named
person or assigns. Sec. 42a-7-105. Construction against negative implication. The omission from
either part 2 or part 3 of this article of a provision corresponding to a provision made
in the other part does not imply that a corresponding rule of law is not applicable. (Return to TOC) (Return to Chapters) (Return to Titles) Sec. 42a-7-201. Who may issue a warehouse receipt; storage under government bond. (1) A warehouse receipt may be issued by any warehouseman. Sec. 42a-7-202. Form of warehouse receipt; essential terms; optional terms.
(1) A warehouse receipt need not be in any particular form. Sec. 42a-7-203. Liability for nonreceipt or misdescription. A party to or purchaser for value in good faith of a document of title other than a bill of lading relying
in either case upon the description therein of the goods may recover from the issuer
damages caused by the nonreceipt or misdescription of the goods, except to the extent
that the document conspicuously indicates that the issuer does not know whether any
part or all of the goods in fact were received or conform to the description, as where the
description is in terms of marks or labels or kind, quantity or condition, or the receipt
or description is qualified by "contents, condition and quality unknown", "said to contain" or the like, if such indication is true, or the party or purchaser otherwise has notice. Sec. 42a-7-204. Duty of care; contractual limitation of warehouseman's liability. (1) A warehouseman is liable for damages for loss of or injury to the goods caused
by his failure to exercise such care in regard to them as a reasonably careful man would
exercise under like circumstances but unless otherwise agreed he is not liable for damages which could not have been avoided by the exercise of such care. Sec. 42a-7-205. Title under warehouse receipt defeated in certain cases. A
buyer in the ordinary course of business of fungible goods sold and delivered by a
warehouseman who is also in the business of buying and selling such goods takes free
of any claim under a warehouse receipt even though it has been duly negotiated. Sec. 42a-7-206. Termination of storage at warehouseman's option. (1) A warehouseman may on notifying the person on whose account the goods are held and any
other person known to claim an interest in the goods require payment of any charges
and removal of the goods from the warehouse at the termination of the period of storage
fixed by the document, or, if no period is fixed, within a stated period not less than thirty
days after the notification. If the goods are not removed before the date specified in the
notification, the warehouseman may sell them in accordance with the provisions of
section 42a-7-210 on enforcement of a warehouseman's lien. Sec. 42a-7-207. Goods must be kept separate; fungible goods. (1) Unless the
warehouse receipt otherwise provides, a warehouseman must keep separate the goods
covered by each receipt so as to permit at all times identification and delivery of those
goods except that different lots of fungible goods may be commingled. Sec. 42a-7-208. Altered warehouse receipts. Where a blank in a negotiable warehouse receipt has been filled in without authority, a purchaser for value and without
notice of the want of authority may treat the insertion as authorized. Any other unauthorized alteration leaves any receipt enforceable against the issuer according to its original
tenor. Sec. 42a-7-209. Lien of warehouseman. (1) A warehouseman has a lien against
the bailor on the goods covered by a warehouse receipt or on the proceeds thereof in his
possession for charges for storage or transportation, including demurrage and terminal
charges, insurance, labor, or charges present or future in relation to the goods, and for
expenses necessary for preservation of the goods or reasonably incurred in their sale
pursuant to law. If the person on whose account the goods are held is liable for like
charges or expenses in relation to other goods whenever deposited and it is stated in the
receipt that a lien is claimed for charges and expenses in relation to other goods, the
warehouseman also has a lien against him for such charges and expenses whether or
not the other goods have been delivered by the warehouseman. But against a person to
whom a negotiable warehouse receipt is duly negotiated a warehouseman's lien is limited to charges in an amount or at a rate specified on the receipt or if no charges are so
specified then to a reasonable charge for storage of the goods covered by the receipt
subsequent to the date of the receipt. Sec. 42a-7-210. Enforcement of warehouseman's lien. (1) Except as provided
in subsection (2), a warehouseman's lien may be enforced by public or private sale of the
goods in bloc or in parcels, at any time or place and on any terms which are commercially
reasonable, after notifying all persons known to claim an interest in the goods. Such
notification must include a statement of the amount due, the nature of the proposed sale
and the time and place of any public sale. The fact that a better price could have been
obtained by a sale at a different time or in a different method from that selected by the
warehouseman is not of itself sufficient to establish that the sale was not made in a
commercially reasonable manner. If the warehouseman either sells the goods in the
usual manner in any recognized market therefor, or if he sells at the price current in such
market at the time of his sale, or if he has otherwise sold in conformity with commercially
reasonable practices among dealers in the type of goods sold, he has sold in a commercially reasonable manner. A sale of more goods than apparently necessary to be offered
to insure satisfaction of the obligation is not commercially reasonable except in cases
covered by the preceding sentence. (Return to TOC) (Return to Chapters) (Return to Titles) Sec. 42a-7-301. Liability for nonreceipt or misdescription; "said to contain";
"shipper's load and count"; improper handling. (1) A consignee of a nonnegotiable
bill who has given value in good faith or a holder to whom a negotiable bill has been
duly negotiated relying in either case upon the description therein of the goods, or upon
the date therein shown, may recover from the issuer damages caused by the misdating
of the bill or the nonreceipt or misdescription of the goods, except to the extent that the
document indicates that the issuer does not know whether any part or all of the goods
in fact were received or conform to the description, as where the description is in terms
of marks or labels or kind, quantity, or condition or the receipt or description is qualified
by "contents or condition of contents of packages unknown", "said to contain", "shipper's weight, load and count" or the like, if such indication be true. Sec. 42a-7-302. Through bills of lading and similar documents. (1) The issuer
of a through bill of lading or other document embodying an undertaking to be performed
in part by persons acting as its agents or by connecting carriers is liable to anyone entitled
to recover on the document for any breach by such other persons or by a connecting
carrier of its obligation under the document but to the extent that the bill covers an
undertaking to be performed overseas or in territory not contiguous to the continental
United States or an undertaking including matters other than transportation this liability
may be varied by agreement of the parties. Sec. 42a-7-303. Diversion; reconsignment; change of instructions. (1) Unless
the bill of lading otherwise provides, the carrier may deliver the goods to a person or
destination other than that stated in the bill or may otherwise dispose of the goods on
instructions from (a) the holder of a negotiable bill; or (b) the consignor on a nonnegotiable bill notwithstanding contrary instructions from the consignee; or (c) the consignee
on a nonnegotiable bill in the absence of contrary instructions from the consignor, if
the goods have arrived at the billed destination or if the consignee is in possession of
the bill; or (d) the consignee on a nonnegotiable bill if he is entitled as against the
consignor to dispose of them. Sec. 42a-7-304. Bills of lading in a set. (1) Except where customary in overseas
transportation, a bill of lading must not be issued in a set of parts. The issuer is liable
for damages caused by violation of this subsection. Sec. 42a-7-305. Destination bills. (1) Instead of issuing a bill of lading to the
consignor at the place of shipment a carrier may at the request of the consignor procure
the bill to be issued at destination or at any other place designated in the request. Sec. 42a-7-306. Altered bills of lading. An unauthorized alteration or filling in
of a blank in a bill of lading leaves the bill enforceable according to its original tenor. Sec. 42a-7-307. Lien of carrier. (1) A carrier has a lien on the goods covered by
a bill of lading for charges subsequent to the date of its receipt of the goods for storage
or transportation, including demurrage and terminal charges, and for expenses necessary
for preservation of the goods incident to their transportation or reasonably incurred in
their sale pursuant to law. But against a purchaser for value of a negotiable bill of lading
a carrier's lien is limited to charges stated in the bill or the applicable tariffs, or if no
charges are stated then to a reasonable charge. Sec. 42a-7-308. Enforcement of carrier's lien. (1) A carrier's lien may be enforced by public or private sale of the goods, in bloc or in parcels, at any time or place
and on any terms which are commercially reasonable, after notifying all persons known
to claim an interest in the goods. Such notification must include a statement of the
amount due, the nature of the proposed sale and the time and place of any public sale.
The fact that a better price could have been obtained by a sale at a different time or in
a different method from that selected by the carrier is not of itself sufficient to establish
that the sale was not made in a commercially reasonable manner. If the carrier either
sells the goods in the usual manner in any recognized market therefor or if he sells at
the price current in such market at the time of his sale or if he has otherwise sold in
conformity with commercially reasonable practices among dealers in the type of goods
sold he has sold in a commercially reasonable manner. A sale of more goods than apparently necessary to be offered to ensure satisfaction of the obligation is not commercially
reasonable except in cases covered by the preceding sentence. Sec. 42a-7-309. Duty of care; contractual limitation of carrier's liability. (1)
A carrier who issues a bill of lading whether negotiable or nonnegotiable must exercise
the degree of care in relation to the goods which a reasonably careful man would exercise
under like circumstances. This subsection does not repeal or change any law or rule
of law which imposes liability upon a common carrier for damages not caused by its
negligence. Sec. 42a-7-401. Irregularities in issue of receipt or bill or conduct of issuer. The
obligations imposed by this article on an issuer apply to a document of title regardless of
the fact that (a) the document may not comply with the requirements of this article or
of any other law or regulation regarding its issue, form or content; or (b) the issuer may
have violated laws regulating the conduct of his business; or (c) the goods covered by
the document were owned by the bailee at the time the document was issued; or (d) the
person issuing the document does not come within the definition of warehouseman if
it purports to be a warehouse receipt. Sec. 42a-7-402. Duplicate receipt or bill; overissue. Neither a duplicate nor any
other document of title purporting to cover goods already represented by an outstanding
document of the same issuer confers any right in the goods, except as provided in the
case of bills in a set, overissue of documents for fungible goods and substitutes for
lost, stolen or destroyed documents, but the issuer is liable for damages caused by his
overissue or failure to identify a duplicate document as such by conspicuous notation
on its face. Sec. 42a-7-403. Obligation of warehouseman or carrier to deliver; excuse. (1)
The bailee must deliver the goods to a person entitled under the document who complies
with subsections (2) and (3), unless and to the extent that the bailee establishes any of
the following: (a) Delivery of the goods to a person whose receipt was rightful as against
the claimant; (b) damage to or delay, or loss or destruction of the goods for which the
bailee is not liable; (c) previous sale or other disposition of the goods in lawful enforcement of a lien or on warehouseman's lawful termination of storage; (d) the exercise by
a seller of his right to stop delivery pursuant to the provisions of section 42a-2-705; (e)
a diversion, reconsignment or other disposition pursuant to the provisions of section 42a-
7-303 or tariff regulating such right; (f) release, satisfaction or any other fact affording a
personal defense against the claimant; (g) any other lawful excuse. Sec. 42a-7-404. No liability for good faith delivery pursuant to receipt or bill.
A bailee who in good faith including observance of reasonable commercial standards
has received goods and delivered or otherwise disposed of them according to the terms
of the document of title or pursuant to this article is not liable therefor. This rule applies
even though the person from whom he received the goods had no authority to procure
the document or to dispose of the goods and even though the person to whom he delivered
the goods had no authority to receive them. Sec. 42a-7-501. Form of negotiation and requirement of "due negotiation". (1)
A negotiable document of title running to the order of a named person is negotiated by
his endorsement and delivery. After his endorsement in blank or to bearer any person
can negotiate it by delivery alone. Sec. 42a-7-502. Rights acquired by due negotiation. (1) Subject to the following
section and to the provisions of section 42a-7-205 on fungible goods, a holder to whom
a negotiable document of title has been duly negotiated acquires thereby: (a) Title to
the document; (b) title to the goods; (c) all rights accruing under the law of agency or
estoppel, including rights to goods delivered to the bailee after the document was issued;
and (d) the direct obligation of the issuer to hold or deliver the goods according to the
terms of the document free of any defense or claim by him except those arising under
the terms of the document or under this article. In the case of a delivery order the bailee's
obligation accrues only upon acceptance and the obligation acquired by the holder is
that the issuer and any endorser will procure the acceptance of the bailee. Sec. 42a-7-503. Document of title to goods defeated in certain cases. (1) A document of title confers no right in goods against a person who before issuance of the
document had a legal interest or a perfected security interest in them and who neither
(a) delivered or entrusted them or any document of title covering them to the bailor or
his nominee with actual or apparent authority to ship, store or sell or with power to
obtain delivery under section 42a-7-403 or with power of disposition under sections
42a-2-403 and 42a-9-307 or other statute or rule of law; nor (b) acquiesced in the procurement by the bailor or his nominee of any document of title. Sec. 42a-7-504. Rights acquired in the absence of due negotiation; effect of
diversion; seller's stoppage of delivery. (1) A transferee of a document, whether negotiable or nonnegotiable to whom the document has been delivered but not duly negotiated, acquires the title and rights which his transferor had or had actual authority to
convey. Sec. 42a-7-505. Endorser not a guarantor for other parties. The endorsement
of a document of title issued by a bailee does not make the endorser liable for any default
by the bailee or by previous endorsers. Sec. 42a-7-506. Delivery without endorsement: right to compel endorsement.
The transferee of a negotiable document of title has a specifically enforceable right
to have his transferor supply any necessary endorsement but the transfer becomes a
negotiation only as of the time the endorsement is supplied. Sec. 42a-7-507. Warranties on negotiation or transfer of receipt or bill. Where
a person negotiates or transfers a document of title for value otherwise than as a mere
intermediary under the next following section, then unless otherwise agreed he warrants
to his immediate purchaser only in addition to any warranty made in selling the goods
(a) that the document is genuine; and (b) that he has no knowledge of any fact which
would impair its validity or worth; and (c) that his negotiation or transfer is rightful and
fully effective with respect to the title to the document and the goods it represents. Sec. 42a-7-508. Warranties of collecting bank as to documents. A collecting
bank or other intermediary known to be entrusted with documents on behalf of another
or with collection of a draft or other claim against delivery of documents warrants by
such delivery of the documents only its own good faith and authority. This rule applies
even though the intermediary has purchased or made advances against the claim or draft
to be collected. Sec. 42a-7-509. Receipt or bill: When adequate compliance with commercial
contract. The question whether a document is adequate to fulfill the obligations of a
contract for sale or the conditions of a credit is governed by articles 2 and 5. Sec. 42a-7-601. Lost and missing documents. (1) If a document has been lost,
stolen or destroyed, a court may order delivery of the goods or issuance of a substitute
document and the bailee may without liability to any person comply with such order.
If the document was negotiable the claimant must post security approved by the court
to indemnify any person who may suffer loss as a result of nonsurrender of the document.
If the document was not negotiable, such security may be required at the discretion of
the court. The court may also in its discretion order payment of the bailee's reasonable
costs and counsel fees. Sec. 42a-7-602. Attachment of goods covered by a negotiable document. Except where the document was originally issued upon delivery of the goods by a person
who had no power to dispose of them, no lien attaches by virtue of any judicial process to
goods in the possession of a bailee for which a negotiable document of title is outstanding
unless the document be first surrendered to the bailee or its negotiation enjoined, and
the bailee shall not be compelled to deliver the goods pursuant to process until the
document is surrendered to him or impounded by the court. One who purchases the
document for value without notice of the process or injunction takes free of the lien
imposed by judicial process.
(1959, P.A. 133, S. 7-101.)
See Sec. 42a-10-104 re failure of article 7 to repeal or modify laws prescribing form or contents of documents of title.
(Return to TOC) (Return to Chapters) (Return to Titles)
(2) Other definitions applying to this article or to specified parts thereof and the
sections in which they appear are:
"Duly negotiate". Section 42a-7-501.
"Person entitled under the document". Section 42a-7-403(4).
(3) Definitions in other articles applying to this article and the sections in which
they appear are:
"Contract for sale". Section 42a-2-106.
"Overseas". Section 42a-2-323.
"Receipt" of goods. Section 42a-2-103.
(4) In addition article 1 contains general definitions and principles of construction
and interpretation applicable throughout this article.
(1959, P.A. 133, S. 7-102.)
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(1959, P.A. 133, S. 7-103.)
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(2) Any other document is nonnegotiable. A bill of lading in which it is stated that
the goods are consigned to a named person is not made negotiable by a provision that
the goods are to be delivered only against a written order signed by the same or another
named person.
(1959, P.A. 133, S. 7-104.)
(Return to TOC) (Return to Chapters) (Return to Titles)
(1959, P.A. 133, S. 7-105.)
*Sec. 42a-7-201 et seq. cited. 18 CA 1, 3.
WAREHOUSE RECEIPTS: SPECIAL PROVISIONS
(2) Where goods including distilled spirits and agricultural commodities are stored
under a statute requiring a bond against withdrawal or a license for the issuance of
receipts in the nature of warehouse receipts, a receipt issued for the goods has like effect
as a warehouse receipt even though issued by a person who is the owner of the goods
and is not a warehouseman.
(1959, P.A. 133, S. 7-201.)
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(2) Unless a warehouse receipt embodies within its written or printed terms each
of the following, the warehouseman is liable for damages caused by the omission to a
person injured thereby: (a) The location of the warehouse where the goods are stored;
(b) the date of issue of the receipt; (c) the consecutive number of the receipt; (d) a
statement whether the goods received will be delivered to the bearer, to a specified
person, or to a specified person or his order; (e) the rate of storage and handling charges,
except that where goods are stored under a field warehousing arrangement a statement
of that fact is sufficient on a nonnegotiable receipt; (f) a description of the goods or of
the packages containing them; (g) the signature of the warehouseman, which may be
made by his authorized agent; (h) if the receipt is issued for goods of which the warehouseman is owner, either solely or jointly or in common with others, the fact of such
ownership; and (i) a statement of the amount of advances made and of liabilities incurred
for which the warehouseman claims a lien or security interest as provided in section
42a-7-209. If the precise amount of such advances made or of such liabilities incurred
is, at the time of the issue of the receipt, unknown to the warehouseman or to his agent
who issues it, a statement of the fact that advances have been made or liabilities incurred
and the purpose thereof is sufficient.
(3) A warehouseman may insert in his receipt any other terms which are not contrary
to the provisions of this title and do not impair his obligation of delivery or his duty of
care. Any contrary provisions shall be ineffective.
(1959, P.A. 133, S. 7-202.)
See Sec. 42a-7-204 re warehouseman's liability.
See Sec. 42a-7-403 re warehouseman's obligation to deliver goods.
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(1959, P.A. 133, S. 7-203.)
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(2) Damages may be limited by a term in the warehouse receipt or storage agreement
limiting the amount of liability in case of loss or damage, and setting forth a specific
liability per article or item, or value per unit of weight, beyond which the warehouseman
shall not be liable; provided, however, that such liability may on written request of the
bailor at the time of signing such storage agreement or within a reasonable time after
receipt of the warehouse receipt be increased on part or all of the goods thereunder, in
which event increased rates may be charged based on such increased valuation, but that
no such increase shall be permitted contrary to a lawful limitation of liability contained
in the warehouseman's tariff, if any. No such limitation is effective with respect to the
warehouseman's liability for conversion to his own use.
(3) Reasonable provisions as to the time and manner of presenting claims and instituting actions based on the bailment may be included in the warehouse receipt or tariff.
(1959, P.A. 133, S. 7-204.)
Annotations to former statute (1958 Rev., S. 40-22):
Care required. 73 C. 355; 79 C. 342. There is a presumption of negligence in case of nondelivery. 108 C. 659. Defendant
is not an insurer. Destruction of apples by escape of free ammonia held not negligence. 135 C. 424.
Annotations to present section:
Subsec. (2):
Cited. 187 C. 405, 413.
Section is merely declaratory of the common law of this state concerning a bailee's ability to limit liability in a receipt
or contract. 34 CS 661, 663.
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(1959, P.A. 133, S. 7-205.)
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(2) If a warehouseman in good faith believes that the goods are about to deteriorate
or decline in value to less than the amount of his lien within the time prescribed in
subsection (1) for notification, advertisement and sale, the warehouseman may specify
in the notification any reasonable shorter time for removal of the goods and in case the
goods are not removed, may sell them at public sale held not less than one week after
a single advertisement or posting.
(3) If as a result of a quality or condition of the goods of which the warehouseman
had no notice at the time of deposit the goods are a hazard to other property or to the
warehouse or to persons, the warehouseman may sell the goods at public or private
sale without advertisement on reasonable notification to all persons known to claim an
interest in the goods. If the warehouseman after a reasonable effort is unable to sell the
goods he may dispose of them in any lawful manner and shall incur no liability by reason
of such disposition.
(4) The warehouseman must deliver the goods to any person entitled to them under
this article upon due demand made at any time prior to sale or other disposition under
this section.
(5) The warehouseman may satisfy his lien from the proceeds of any sale or disposition under this section but must hold the balance for delivery on the demand of any
person to whom he would have been bound to deliver the goods.
(1959, P.A. 133, S. 7-206.)
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(2) Fungible goods so commingled are owned in common by the persons entitled
thereto and the warehouseman is severally liable to each owner for that owner's share.
Where because of overissue a mass of fungible goods is insufficient to meet all the
receipts which the warehouseman has issued against it, the persons entitled include all
holders to whom overissued receipts have been duly negotiated.
(1959, P.A. 133, S. 7-207.)
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(1959, P.A. 133, S. 7-208.)
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(2) The warehouseman may also reserve a security interest against the bailor for a
maximum amount specified on the receipt for charges other than those specified in
subsection (1), such as for money advanced and interest. Such a security interest is
governed by article 9.
(3) A warehouseman's lien for charges and expenses under subsection (1) or a security interest under subsection (2) is also effective against any person who so entrusted
the bailor with possession of the goods that a pledge of them by him to a good faith
purchaser for value would have been valid but is not effective against a person as to
whom the document confers no right in the goods covered by it under section 42a-7-503.
(4) A warehouseman loses his lien on any goods which he voluntarily delivers or
which he unjustifiably refuses to deliver.
(1959, P.A. 133, S. 7-209.)
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(2) A warehouseman's lien on goods other than goods stored by a merchant in the
course of his business may be enforced only as follows: (a) All persons known to claim
an interest in the goods must be notified. (b) The notification must be delivered in person
or sent by registered letter or by certified mail receipted for on mailing to the last-
known address of any person to be notified. (c) The notification must include an itemized
statement of the claim, a description of the goods subject to the lien, a demand for
payment within a specified time not less than ten days after receipt of the notification,
and a conspicuous statement that unless the claim is paid within that time the goods will
be advertised for sale and sold by auction at a specified time and place. (d) The sale
must conform to the terms of the notification. (e) The sale must be held at the nearest
suitable place to that where the goods are held or stored. (f) After the expiration of the
time given in the notification, an advertisement of the sale must be published once a
week for two weeks consecutively in a newspaper of general circulation where the sale
is to be held. The advertisement must include a description of the goods, the name of
the person on whose account they are being held, and the time and place of the sale.
The sale must take place at least fifteen days after the first publication. If there is no
newspaper of general circulation where the sale is to be held, the advertisement must
be posted at least ten days before the sale in not less than six conspicuous places in the
neighborhood of the proposed sale.
(3) Before any sale pursuant to this section any person claiming a right in the goods
may pay the amount necessary to satisfy the lien and the reasonable expenses incurred
under this section. In that event the goods must not be sold, but must be retained by the
warehouseman subject to the terms of the receipt and this article.
(4) The warehouseman may buy at any public sale pursuant to this section.
(5) A purchaser in good faith of goods sold to enforce a warehouseman's lien takes
the goods free of any rights of persons against whom the lien was valid, despite noncompliance by the warehouseman with the requirements of this section.
(6) The warehouseman may satisfy his lien from the proceeds of any sale pursuant
to this section but must hold the balance, if any, for delivery on demand to any person
to whom he would have been bound to deliver the goods.
(7) The rights provided by this section shall be in addition to all other rights allowed
by law to a creditor against his debtor.
(8) Where a lien is on goods stored by a merchant in the course of his business the
lien may be enforced in accordance with either subsection (1) or (2).
(9) The warehouseman is liable for damages caused by failure to comply with the
requirements for sale under this section and in case of wilful violation is liable for
conversion.
(1959, P.A. 133, S. 7-210; 1961, P.A. 116, S. 7.)
History: 1961 act added receipting requirement of subs. (2) (b).
See Sec. 40-55 re delivery of goods without obtaining negotiable receipt.
BILLS OF LADING: SPECIAL PROVISIONS
(2) When goods are loaded by an issuer who is a common carrier, the issuer must
count the packages of goods if package freight and ascertain the kind and quantity if
bulk freight. In such cases "shipper's weight, load and count", or other words indicating
that the description was made by the shipper are ineffective except as to freight concealed
by packages.
(3) When bulk freight is loaded by a shipper who makes available to the issuer
adequate facilities for weighing such freight, an issuer who is a common carrier must
ascertain the kind and quantity within a reasonable time after receiving the written request of the shipper to do so. In such cases "shipper's weight" or other words of like
purport are ineffective.
(4) The issuer may by inserting in the bill the words "shipper's weight, load and
count" or other words of like purport indicate that the goods were loaded by the shipper
and if such statement is true the issuer shall not be liable for damages caused by the
improper loading; but the omission of such words does not imply liability for such
damages.
(5) The shipper shall be deemed to have guaranteed to the issuer the accuracy at
the time of shipment of the description, marks, labels, number, kind, quantity, condition
and weight, as furnished by him; and the shipper shall indemnify the issuer against
damage caused by inaccuracies in such particulars. The right of the issuer to such indemnity shall in no way limit his responsibility and liability under the contract of carriage
to any person other than the shipper.
(1959, P.A. 133, S. 7-301.)
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(2) Where goods covered by a through bill of lading or other document embodying
an undertaking to be performed in part by persons other than the issuer are received by
any such person, he is subject with respect to his own performance while the goods are
in his possession to the obligation of the issuer. His obligation is discharged by delivery
of the goods to another such person pursuant to the document, and does not include
liability for breach by any other such persons or by the issuer.
(3) The issuer of such through bill of lading or other document shall be entitled to
recover from the connecting carrier or such other person in possession of the goods
when the breach of the obligation under the document occurred, the amount it may be
required to pay to anyone entitled to recover on the document therefor, as may be evidenced by any receipt, judgment, or transcript thereof, and the amount of any expense
reasonably incurred by it in defending any action brought by anyone entitled to recover
on the document therefor.
(1959, P.A. 133, S. 7-302.)
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(2) Unless such instructions are noted on a negotiable bill of lading, a person to
whom the bill is duly negotiated can hold the bailee according to the original terms.
(1959, P.A. 133, S. 7-303.)
Cited. 207 C. 599, 607.
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(2) Where a bill of lading is lawfully drawn in a set of parts, each of which is
numbered and expressed to be valid only if the goods have not been delivered against
any other part, the whole of the parts constitute one bill.
(3) Where a bill of lading is lawfully issued in a set of parts and different parts are
negotiated to different persons, the title of the holder to whom the first due negotiation
is made prevails as to both the document and the goods even though any later holder
may have received the goods from the carrier in good faith and discharged the carrier's
obligation by surrender of his part.
(4) Any person who negotiates or transfers a single part of a bill of lading drawn
in a set is liable to holders of that part as if it were the whole set.
(5) The bailee is obliged to deliver in accordance with part 4 of this article against
the first presented part of a bill of lading lawfully drawn in a set. Such delivery discharges
the bailee's obligation on the whole bill.
(1959, P.A. 133, S. 7-304.)
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(2) Upon request of anyone entitled as against the carrier to control the goods while
in transit and on surrender of any outstanding bill of lading or other receipt covering
such goods, the issuer may procure a substitute bill to be issued at any place designated
in the request.
(1959, P.A. 133, S. 7-305.)
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(1959, P.A. 133, S. 7-306.)
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(2) A lien for charges and expenses under subsection (1) on goods which the carrier
was required by law to receive for transportation is effective against the consignor or
any person entitled to the goods unless the carrier had notice that the consignor lacked
authority to subject the goods to such charges and expenses. Any other lien under subsection (1) is effective against the consignor and any person who permitted the bailor to
have control or possession of the goods unless the carrier had notice that the bailor
lacked such authority.
(3) A carrier loses his lien on any goods which he voluntarily delivers or which he
unjustifiably refuses to deliver.
(1959, P.A. 133, S. 7-307.)
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(2) Before any sale pursuant to this section any person claiming a right in the goods
may pay the amount necessary to satisfy the lien and the reasonable expenses incurred
under this section. In that event the goods must not be sold, but must be retained by the
carrier subject to the terms of the bill and this article.
(3) The carrier may buy at any public sale pursuant to this section.
(4) A purchaser in good faith of goods sold to enforce a carrier's lien takes the goods
free of any rights of persons against whom the lien was valid, despite noncompliance
by the carrier with the requirements of this section.
(5) The carrier may satisfy his lien from the proceeds of any sale pursuant to this
section but must hold the balance, if any, for delivery on demand to any person to whom
he would have been bound to deliver the goods.
(6) The rights provided by this section shall be in addition to all other rights allowed
by law to a creditor against his debtor.
(7) A carrier's lien may be enforced in accordance with either subsection (1) or the
procedure set forth in subsection (2) of section 42a-7-210.
(8) The carrier is liable for damages caused by failure to comply with the requirements for sale under this section and in case of wilful violation is liable for conversion.
(1959, P.A. 133, S. 7-308.)
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(2) Damages may be limited by a provision that the carrier's liability shall not exceed
a value stated in the document if the carrier's rates are dependent upon value and the
consignor by the carrier's tariff is afforded an opportunity to declare a higher value or
a value as lawfully provided in the tariff, or where no tariff is filed he is otherwise
advised of such opportunity; but no such limitation is effective with respect to the carrier's liability for conversion to its own use.
(3) Reasonable provisions as to the time and manner of presenting claims and instituting actions based on the shipment may be included in a bill of lading or tariff.
(1959, P.A. 133, S. 7-309.)
Defendant common carrier who received machines and marked bill of lading "received in good order," held liable for
damages found on delivery to destination. Common carrier is an insurer except as to classes of shipment excepted under
standard bill of lading. 5 Conn. Cir. Ct. 93.
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WAREHOUSE RECEIPTS AND BILLS OF LADING:
GENERAL OBLIGATIONS
(1959, P.A. 133, S. 7-401.)
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(1959, P.A. 133, S. 7-402.)
See Secs. 40-53, 41-49 re issuance of duplicate receipts not marked as such.
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(2) A person claiming goods covered by a document of title must satisfy the bailee's
lien where the bailee so requests or where the bailee is prohibited by law from delivering
the goods until the charges are paid.
(3) Unless the person claiming is one against whom the document confers no right
under section 42a-7-503 (1) he must surrender for cancellation or notation of partial
deliveries any outstanding negotiable document covering the goods, and the bailee must
cancel the document or conspicuously note the partial delivery thereon or be liable to
any person to whom the document is duly negotiated.
(4) "Person entitled under the document" means holder in the case of a negotiable
document, or the person to whom delivery is to be made by the terms of or pursuant to
written instructions under a nonnegotiable document.
(1959, P.A. 133, S. 7-403.)
See Sec. 40-55 re delivery of goods without obtaining negotiable receipt.
Annotations to former statutes:
1958 Rev., S. 40-17: Estopped to deny title of depositor of goods. 79 C. 342.
1958 Rev., S. 41-15: Carrier liable for delivery to a dishonest employee of shipper who had caused goods to be shipped
on fictitious orders to a fictitious consignee and had then represented himself as such consignee. 97 C. 4.
Annotations to present section:
Subsec. (1):
Subdiv. (b) cited. 187 C. 405, 410.
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(1959, P.A. 133, S. 7-404.)
Cited. 187 C. 637, 642.
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WAREHOUSE RECEIPTS AND BILLS OF LADING:
NEGOTIATION AND TRANSFER
(2) (a) A negotiable document of title is also negotiated by delivery alone when
by its original terms it runs to bearer. (b) When a document running to the order of a
named person is delivered to him the effect is the same as if the document had been
negotiated.
(3) Negotiation of a negotiable document of title after it has been endorsed to a
specified person requires endorsement by the special endorsee as well as delivery.
(4) A negotiable document of title is "duly negotiated" when it is negotiated in the
manner stated in this section to a holder who purchases it in good faith without notice
of any defense against or claim to it on the part of any person and for value, unless it is
established that the negotiation is not in the regular course of business or financing or
involves receiving the document in settlement or payment of a money obligation.
(5) Endorsement of a nonnegotiable document neither makes it negotiable nor adds
to the transferee's rights.
(6) The naming in a negotiable bill of a person to be notified of the arrival of the
goods does not limit the negotiability of the bill nor constitute notice to a purchaser
thereof of any interest of such person in the goods.
(1959, P.A. 133, S. 7-501.)
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(2) Subject to the following section, title and rights so acquired are not defeated by
any stoppage of the goods represented by the document or by surrender of such goods
by the bailee, and are not impaired even though the negotiation or any prior negotiation
constituted a breach of duty or even though any person has been deprived of possession
of the document by misrepresentation, fraud, accident, mistake, duress, loss, theft or
conversion, or even though a previous sale or other transfer of the goods or document
has been made to a third person.
(1959, P.A. 133, S. 7-502.)
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(2) Title to goods based upon an unaccepted delivery order is subject to the rights
of anyone to whom a negotiable warehouse receipt or bill of lading covering the goods
has been duly negotiated. Such a title may be defeated under the next section to the
same extent as the rights of the issuer or a transferee from the issuer.
(3) Title to goods based upon a bill of lading issued to a freight forwarder is subject
to the rights of anyone to whom a bill issued by the freight forwarder is duly negotiated;
but delivery by the carrier in accordance with part 4 of this article pursuant to its own
bill of lading discharges the carrier's obligation to deliver.
(1959, P.A. 133, S. 7-503.)
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(2) In the case of a nonnegotiable document, until but not after the bailee receives
notification of the transfer, the rights of the transferee may be defeated (a) by those
creditors of the transferor who could treat the sale as void under section 42a-2-402; or
(b) by a buyer from the transferor in ordinary course of business if the bailee has delivered
the goods to the buyer or received notification of his rights; or (c) as against the bailee
by good faith dealings of the bailee with the transferor.
(3) A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading which causes the bailee not to deliver to the consignee defeats
the consignee's title to the goods if they have been delivered to a buyer in ordinary
course of business and in any event defeats the consignee's rights against the bailee.
(4) Delivery pursuant to a nonnegotiable document may be stopped by a seller under
section 42a-2-705, and subject to the requirement of due notification there provided. A
bailee honoring the seller's instructions is entitled to be indemnified by the seller against
any resulting loss or expense.
(1959, P.A. 133, S. 7-504.)
Annotations to former statute (1958 Rev., S. 40-43):
Rights of holder of receipt given under "field storage warehousing" agreement. 90 C. 415. Where lumber yard is leased
to warehouseman and receipts issued for lumber. 91 C. 57.
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(1959, P.A. 133, S. 7-505.)
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(1959, P.A. 133, S. 7-506.)
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(1959, P.A. 133, S. 7-507.)
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(1959, P.A. 133, S. 7-508.)
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(1959, P.A. 133, S. 7-509.)
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WAREHOUSE RECEIPTS AND BILLS OF LADING:
MISCELLANEOUS PROVISIONS
(2) A bailee who without court order delivers goods to a person claiming under a
missing negotiable document is liable to any person injured thereby, and if the delivery
is not in good faith becomes liable for conversion. Delivery in good faith is not conversion if made in accordance with a field classification or tariff or, where no classification
or tariff is filed, if the claimant posts security with the bailee in an amount at least double
the value of the goods at the time of posting to indemnify any person injured by the
delivery who files a notice of claim within one year after the delivery.
(1959, P.A. 133, S. 7-601.)
See Sec. 40-53 re issuance of duplicate receipts not marked as such.
See Sec. 40-55 re delivery of goods without obtaining negotiable receipt.
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(1959, P.A. 133, S. 7-602.)
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