§2-705. Seller's stoppage of delivery in transit or otherwise
(CONTAINS TEXT WITH VARYING EFFECTIVE DATES)
(1). The seller may stop delivery of goods in the possession of a carrier or other bailee when he discovers the buyer to be insolvent
(section 2-702) and may stop delivery of carload, truckload, planeload or larger shipments of express or freight when the
buyer repudiates or fails to make a payment due before delivery or if for any other reason the seller has a right to withhold
or reclaim the goods.
(2). As against such buyer the seller may stop delivery until
(a). Receipt of the goods by the buyer; or
(b). Acknowledgment to the buyer by any bailee of the goods except a carrier that the bailee holds the goods for the buyer; or
(c). Such acknowledgment to the buyer by a carrier by reshipment or as warehouseman; or
(d). Negotiation to the buyer of any negotiable document of title covering the goods.
(3).
(a). To stop delivery the seller must so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
(b). After such notification the bailee must hold and deliver the goods according to the directions of the seller but the seller
is liable to the bailee for any ensuing charges or damages.
(c). (TEXT EFFECTIVE UNTIL 2/15/10) If a negotiable document of title has been issued for goods the bailee is not obliged to obey a notification to stop until
surrender of the document.
(c). (TEXT EFFECTIVE 2/15/10) If a negotiable document of title has been issued for goods the bailee is not obliged to obey a notification to stop until
surrender of possession or control of the document. [2009, c. 324, Pt. B, §18 (AMD); 2009, c. 324, Pt. B, §48 (AFF).]
(d). A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person
other than the consignor. [2009, c. 324, Pt. B, §18 (AMD); 2009, c. 324, Pt. B, §48 (AFF).]
[
2009, c. 324, Pt. B, §18 (AMD);
2009, c. 324, Pt. B, §48 (AFF)
.]
SECTION HISTORY
2009, c. 324, Pt. B, §18 (AMD).
2009, c. 324, Pt. B, §48 (AFF).
Data for this page extracted on 12/15/2009 09:09:50.