7301-7309

COMMERCIAL CODE
SECTION 7301-7309




7301.  (a) A consignee of a nonnegotiable bill of lading which has
given value in good faith, or a holder to which a negotiable bill has
been duly negotiated, relying upon the description of the goods in
the bill or upon the date shown in the bill, 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 bill
indicates that the issuer does not know whether any part or all of
the goods in fact were received or conform to the description, such
as in a case in which 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 words of
similar import, if that indication is true.
   (b) If goods are loaded by the issuer of a bill of lading:
   (1) the issuer shall count the packages of goods if shipped in
packages and ascertain the kind and quantity if shipped in bulk; and
   (2) words such as "shipper's weight, load, and count," or words of
similar import indicating that the description was made by the
shipper are ineffective except as to goods concealed in packages.
   (c) If bulk goods are loaded by a shipper that makes available to
the issuer of a bill of lading adequate facilities for weighing those
goods, the issuer shall ascertain the kind and quantity within a
reasonable time after receiving the shipper's request in a record to
do so. In that case, "shipper's weight" or words of similar import
are ineffective.
   (d) The issuer of a bill of lading, by including in the bill the
words "shipper's weight, load, and count," or words of similar
import, may indicate that the goods were loaded by the shipper, and,
if that statement is true, the issuer is not liable for damages
caused by the improper loading. However, omission of such words does
not imply liability for damages caused by improper loading.
   (e) A shipper guarantees to an issuer the accuracy at the time of
shipment of the description, marks, labels, number, kind, quantity,
condition, and weight, as furnished by the shipper, and the shipper
shall indemnify the issuer against damage caused by inaccuracies in
those particulars. This right of indemnity does not limit the issuer'
s responsibility or liability under the contract of carriage to any
person other than the shipper.



7302.  (a) The issuer of a through bill of lading, or other document
of title embodying an undertaking to be performed in part by a
person acting as its agent or by a performing carrier, is liable to
any person entitled to recover on the bill or other document for any
breach by the other person or the performing carrier of its
obligation under the bill or other document. However, to the extent
that the bill or other document 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 for breach by the other person or the performing
carrier may be varied by agreement of the parties.
   (b) If goods covered by a through bill of lading or other document
of title embodying an undertaking to be performed in part by a
person other than the issuer are received by that person, the person
is subject, with respect to its own performance while the goods are
in its possession, to the obligation of the issuer. The person's
obligation is discharged by delivery of the goods to another person
pursuant to the bill or other document and does not include liability
for breach by any other person or by the issuer.
   (c) The issuer of a through bill of lading or other document of
title described in subdivision (a) is entitled to recover from the
performing carrier, or other person in possession of the goods when
the breach of the obligation under the bill or other document
occurred:
   (1) the amount it may be required to pay to any person entitled to
recover on the bill or other document for the breach, as may be
evidenced by any receipt, judgment, or transcript of judgment; and
   (2) the amount of any expense reasonably incurred by the issuer in
defending any action commenced by any person entitled to recover on
the bill or other document for the breach.



7303.  (a) Unless the bill of lading otherwise provides, a carrier
may deliver the goods to a person or destination other than that
stated in the bill or may otherwise dispose of the goods, without
liability for misdelivery, on instructions from:
   (1) the holder of a negotiable bill;
   (2) the consignor on a nonnegotiable bill, even if the consignee
has given contrary instructions;
   (3) 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
tangible bill or in control of the electronic bill; or
   (4) the consignee on a nonnegotiable bill, if the consignee is
entitled as against the consignor to dispose of the goods.
   (b) Unless instructions described in subdivision (a) are included
in a negotiable bill of lading, a person to which the bill is duly
negotiated may hold the bailee according to the original terms.




7304.  (a) Except as customary in international transportation, a
tangible bill of lading may not be issued in a set of parts. The
issuer is liable for damages caused by violation of this subdivision.
   (b) If a tangible bill of lading is lawfully issued in a set of
parts, each of which contains an identification code and is expressed
to be valid only if the goods have not been delivered against any
other part, the whole of the parts constitutes one bill.
   (c) If a tangible negotiable 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 which the first due negotiation
is made prevails as to both the document of title and the goods even
if any later holder may have received the goods from the carrier in
good faith and discharged the carrier's obligation by surrendering
its part.
   (d) A person that negotiates or transfers a single part of a
tangible bill of lading issued in a set is liable to holders of that
part as if it were the whole set.
   (e) The bailee shall deliver in accordance with Chapter 4
(commencing with Section 7401) against the first presented part of a
tangible bill of lading lawfully issued in a set. Delivery in this
manner discharges the bailee's obligation on the whole bill.




7305.  (a) Instead of issuing a bill of lading to the consignor at
the place of shipment, a carrier, at the request of the consignor,
may procure the bill to be issued at destination or at any other
place designated in the request.
   (b) Upon request of any person entitled as against a carrier to
control the goods while in transit and on surrender of possession or
control of any outstanding bill of lading or other receipt covering
the goods, the issuer, subject to Section 7105, may procure a
substitute bill to be issued at any place designated in the request.




7306.  An unauthorized alteration or filling in of a blank in a bill
of lading leaves the bill enforceable according to its original
tenor.


7307.  (a) A carrier has a lien on the goods covered by a bill of
lading or on the proceeds thereof in its possession for charges after
the date of the carrier's 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.
However, 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, a reasonable
charge.
   (b) A lien for charges and expenses under subdivision (a) on goods
that 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 those charges and expenses. Any
other lien under subdivision (a) is effective against the consignor
and any person that permitted the bailor to have control or
possession of the goods unless the carrier had notice that the bailor
lacked authority.
   (c) A carrier loses its lien on any goods that it voluntarily
delivers or unjustifiably refuses to deliver.



7308.  (a) A carrier's lien on goods may be enforced by public or
private sale of the goods, in bulk or in packages, at any time or
place and on any terms that are commercially reasonable, after
notifying all persons known to claim an interest in the goods. The
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 method different from that selected by the
carrier is not of itself sufficient to establish that the sale was
not made in a commercially reasonable manner. The carrier sells goods
in a commercially reasonable manner if the carrier sells the goods
in the usual manner in any recognized market therefor, sells at the
price current in that market at the time of the sale, or otherwise
sells in conformity with commercially reasonable practices among
dealers in the type of goods sold. 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.
   (b) 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 in complying with this section.
In that event, the goods may not be sold but must be retained by the
carrier, subject to the terms of the bill of lading and this
division.
   (c) A carrier may buy at any public sale pursuant to this section.
   (d) A purchaser in good faith of goods sold to enforce a carrier's
lien takes the goods free of any rights of persons against which the
lien was valid, despite the carrier's noncompliance with this
section.
   (e) A carrier may satisfy its lien from the proceeds of any sale
pursuant to this section but shall hold the balance, if any, for
delivery on demand to any person to which the carrier would have been
bound to deliver the goods.
   (f) The rights provided by this section are in addition to all
other rights allowed by law to a creditor against a debtor.
   (g) A carrier's lien may be enforced pursuant to either
subdivision (a) or the procedure set forth in subdivision (b) of
Section 7210.
   (h) A carrier is liable for damages caused by failure to comply
with the requirements for sale under this section and, in case of
willful violation, is liable for conversion.



7309.  (a) A carrier that issues a bill of lading, whether
negotiable or nonnegotiable, shall exercise the degree of care in
relation to the goods which a reasonably careful person would
exercise under similar circumstances. This subdivision does not
affect any statute, regulation, or rule of law that imposes liability
upon a common carrier for damages not caused by its negligence.
   (b) Damages may be limited by a term in the bill of lading or in a
transportation agreement that the carrier's liability may not exceed
a value stated in the bill or transportation agreement if the
carrier's rates are dependent upon value and the consignor is
afforded an opportunity to declare a higher value and the consignor
is advised of the opportunity. However, such a limitation is not
effective with respect to the carrier's liability for conversion to
its own use.
   (c) Reasonable provisions as to the time and manner of presenting
claims and commencing actions based on the shipment may be included
in a bill of lading or a transportation agreement.