8.2-705 - Seller's stoppage of delivery in transit or otherwise.
§ 8.2-705. Seller's stoppage of delivery in transit or otherwise.
(1) The seller may stop delivery of goods in the possession of a carrier orother bailee when he discovers the buyer to be insolvent (§ 8.2-702) and maystop delivery of carload, truckload, planeload or larger shipments of expressor freight 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 buyer the seller may stop delivery until:
(a) receipt of the goods by the buyer; or
(b) acknowledgment to the buyer by any bailee of the goods except a carrierthat the bailee holds the goods for the buyer; or
(c) such acknowledgment to the buyer by a carrier by reshipment or as awarehouse; or
(d) negotiation to the buyer of any negotiable document of title covering thegoods.
(3) (a) To stop delivery the seller must so notify as to enable the bailee byreasonable diligence to prevent delivery of the goods.
(b) After such notification the bailee must hold and deliver the goodsaccording to the directions of the seller but the seller is liable to thebailee for any ensuing charges or damages.
(c) If a negotiable document of title has been issued for goods the bailee isnot obliged to obey a notification to stop until surrender of possession orcontrol of the document.
(d) A carrier who has issued a nonnegotiable bill of lading is not obliged toobey a notification to stop received from a person other than the consignor.
(1964, c. 219; 2004, c. 200.)