§ 25-2-705. Seller's stoppage of delivery in transit or otherwise.
PART 7.
REMEDIES.
§ 25‑2‑705. Seller's stoppage of delivery in transit or otherwise.
(1) The seller may stopdelivery of goods in the possession of a carrier or other bailee when hediscovers the buyer to be insolvent (G.S. 25‑2‑702) and may stopdelivery of carload, truckload, planeload or larger shipments of express orfreight when the buyer repudiates or fails to make a payment due beforedelivery or if for any other reason the seller has a right to withhold orreclaim the goods.
(2) As against such buyerthe seller may stop delivery until
(a) receipt of the goodsby the buyer; or
(b) acknowledgment tothe buyer by any bailee of the goods except a carrier that the bailee holds thegoods for the buyer; or
(c) such acknowledgmentto the buyer by a carrier by reshipment or as a warehouse; or
(d) negotiation to thebuyer of any negotiable document of title covering the goods.
(3) (a) Tostop delivery the seller must so notify as to enable the bailee by reasonablediligence to prevent delivery of the goods.
(b) After suchnotification the bailee must hold and deliver the goods according to thedirections of the seller but the seller is liable to the bailee for any ensuingcharges or damages.
(c) If a negotiabledocument of title has been issued for goods the bailee is not obliged to obey anotification to stop until surrender of possession or control of the document.
(d) A carrier who hasissued a nonnegotiable bill of lading is not obliged to obey a notification tostop received from a person other than the consignor. (1965, c. 700, s. 1; 2006‑112,s. 37.)