Chapter 8 Section 7: Documents of Title Flashcards
What does Article 7 govern?
Warehouse receipts and bills of lading
What do warehouse receipts represent?
Goods stored in a warehous
What do bills of lading represent?
Goods that are being transported by a carrier
Who issues documents of title?
The bailee (like the UPS)
What is the title of the person who holds goods belonging to another?
The bailor - the bailee gets the goods from them and brings them to the rightful owner
What makes a document of title negotiable?
It is negotiable if the goods are delivered to order or bearer (same magic words as commercial paper)
What are the requirements to be a holder of duly negotiated document of title (like HDC)?
Give value
Take it in good faith
Be without notice of defenses
It must be negotiable
What is required to pass title on a bearer document?
What is required to pass title on an order document?
Delivery
Delivery and signature
When title passes, what all goes to the new holder?
Title to the document and to the goods the document represents
What do you call the parties involved in a nonnegotiable document transfer?
The party getting the goods is the consignee. The goods have to be delivered to them, not to the one possessing the document.
What must be included in the warehouse receipt?
The location of the goods
Who is to receive the goods
A description of the goods
The warehouseman’s signature
What must be included in the bill of lading?
The goods being shipped and their definition
The name of the person from whom the goods were received (consignor)
Name of the person to whom the goods are being delivered (consignee)
Does the common carrier have a high or low standard of care?
High - treated as the insurer of the goods and is liable for all damages and negligence
