Sec. 42a-7-503. Document of title to goods defeated in certain cases.
Sec. 42a-7-503. Document of title to goods defeated in certain cases. (a) A document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the goods and that did not:
(1) Deliver or entrust the goods or any document of title covering the goods to the
bailor or the bailor's nominee with: (A) Actual or apparent authority to ship, store or
sell; (B) power to obtain delivery under section 42a-7-403; or (C) power of disposition
under section 42a-2-403, 42a-2A-404, 42a-2A-405 or 42a-9-320, subsection (c) of section 42a-9-321 or other statute or rule of law; or
(2) Acquiesce in the procurement by the bailor or its nominee of any document.
(b) Title to goods based upon an unaccepted delivery order is subject to the rights
of any person to which a negotiable warehouse receipt or bill of lading covering the
goods has been duly negotiated. That title may be defeated under section 42a-7-504 to
the same extent as the rights of the issuer or a transferee from the issuer.
(c) Title to goods based upon a bill of lading issued to a freight forwarder is subject to
the rights of any person to which a bill issued by the freight forwarder is duly negotiated.
However, 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; P.A. 01-132, S. 145; P.A. 04-64, S. 31.)
History: P.A. 01-132 amended Subsec. (1) to replace reference to Sec. 42a-9-307 with Sec. 42a-9-320; P.A. 04-64
amended section to adopt the 2003 Revision of Uniform Commercial Code Article 7-Documents of Title.