49 U.S.C. § 80107 — Warranties and liability
submitted 32 years ago by Pub. L. 103-272 to r/title-49-TRANSPORTATION · 256 words · no verdicts yet
This section states warranties made when a bill of lading is negotiated or transferred and limits certain warranties and indorser liability.
(a) General Rule. Unless the parties show a contrary intent, a person who negotiates or transfers a bill for value warrants that—(1) it is genuine; (2) the person may transfer it and title to the described goods; (3) the person does not know a fact affecting the bill’s validity or value; and (4) the goods are merchantable or fit for a particular purpose when that warranty would have been implied if the parties had transferred the goods without a bill.
(b) Security for Debt. A person holding a bill as security for a debt does not, by demanding or receiving payment in good faith, warrant the bill’s genuineness or the quantity or quality of the described goods.
(c) Duplicates. If a carrier issues a bill marked “duplicate” or another word showing it is not original, the carrier is liable as someone representing and warranting that it accurately copies a properly issued original. The carrier has no other liability under the bill.
(d) Indorser Liability. Indorsing a bill does not make the indorser liable because the carrier or an earlier indorser failed to perform its obligations.
Unless a contrary intention appears, a person negotiating or transferring a bill of lading for value warrants that—
the bill is genuine;
the person has the right to transfer the bill and the title to the goods described in the bill;
the person does not know of a fact that would affect the validity or worth of the bill; and
the goods are merchantable or fit for a particular purpose when merchantability or fitness would have been implied if the agreement of the parties had been to transfer the goods without a bill of lading.
A person holding a bill of lading as security for a debt and in good faith demanding or receiving payment of the debt from another person does not warrant by the demand or receipt—
the genuineness of the bill; or
the quantity or quality of the goods described in the bill.
A common carrier issuing a bill of lading, on the face of which is the word “duplicate” or another word indicating that the bill is not an original bill, is liable the same as a person that represents and warrants that the bill is an accurate copy of an original bill properly issued. The carrier is not otherwise liable under the bill.
Indorsement of a bill of lading does not make the indorser liable for failure of the common carrier or a previous indorser to fulfill its obligations.
Source credit: (Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1349.)
- 1994Enacted · Pub. L. 103-272 · 108 Stat. 1349
A history note hasn’t been published yet. The record shows enactment by Pub. L. 103-272 on 1994-07-05.
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