70A-7a-403 - Obligation of bailee to deliver -- Excuse.
70A-7a-403. Obligation of bailee to deliver -- Excuse.
(1) A bailee shall deliver the goods to a person entitled under a document of title if theperson complies with Subsections (2) and (3), unless and to the extent that the bailee establishesany of the following:
(a) delivery of the goods to a person whose receipt was rightful as against the claimant;
(b) damage to or delay, loss, or destruction of the goods for which the bailee is not liable;
(c) previous sale or other disposition of the goods in lawful enforcement of a lien or on awarehouse's lawful termination of storage;
(d) the exercise by a seller of its right to stop delivery pursuant to Section 70A-2-705 orby a lessor of its right to stop delivery pursuant to Section 70A-2a-526;
(e) a diversion, reconsignment, or other disposition pursuant to Section 70A-7a-303;
(f) release, satisfaction, or any other personal defense against the claimant; or
(g) any other lawful excuse.
(2) A person claiming goods covered by a document of title shall satisfy the bailee's lienif the bailee so requests or if the bailee is prohibited by law from delivering the goods until thecharges are paid.
(3) Unless a person claiming the goods is a person against which the document of titledoes not confer a right under Subsection 70A-7a-503(1)(a):
(a) the person claiming under a document shall surrender possession or control of anyoutstanding negotiable document covering the goods for cancellation or indication of partialdeliveries; and
(b) the bailee shall cancel the document or conspicuously indicate in the document thepartial delivery or the bailee is liable to any person to which the document is duly negotiated.
Enacted by Chapter 42, 2006 General Session