TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 7

DOCUMENTS OF TITLE

PART 5.

WAREHOUSE RECEIPTS AND BILLS OF LADING — NEGOTIATION AND TRANSFER

28-7-507.  Warranties on negotiation or delivery of document of title. If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under section 28-7-508, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that:

(1)  The document is genuine;

(2)  The transferor does not have knowledge of any fact that would impair the document’s validity or worth; and

(3)  The negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.

History:

[28-7-507, added 2004, ch. 42, sec. 2, p. 95.]