- Consolidated Laws - Uniform Commercial Code
PART 3
BILLS OF LADING: SPECIAL PROVISIONS
Section 7--301. Liability For Non-Receipt or Misdescription; "Said to
Contain"; "Shipper`s Load and Count"; Improper
Handling.
(1) A consignee of a non-negotiable bill who has given value in good
faith or a holder to whom a negotiable bill has been duly negotiated
relying in either case upon the description therein of the goods, or
upon the date therein shown, may recover from the issuer damages caused
by the misdating of the bill or the non-receipt or misdescription of the
goods, except to the extent that the document indicates that the issuer
does not know whether any part or all of the goods in fact were received
or conform to the description, as where the description is in terms of
marks or labels or kind, quantity, or condition or the receipt or
description is qualified by "contents or condition of contents of
packages unknown", "said to contain", "shipper`s weight, load and count"
or the like, if such indication be true.
(2) When goods are loaded by an issuer who is a common carrier, the
issuer must count the packages of goods if package freight and ascertain
the kind and quantity if bulk freight. In such cases "shipper`s weight,
load and count" or other words indicating that the description was made
by the shipper are ineffective except as to freight concealed by
packages.
(3) When bulk freight is loaded by a shipper who makes available to
the issuer adequate facilities for weighing such freight, an issuer who
is a common carrier must ascertain the kind and quantity within a
reasonable time after receiving the written request of the shipper to do
so. In such cases "shipper`s weight" or other words of like purport are
ineffective.
(4) The issuer may by inserting in the bill the words "shipper`s
weight, load and count" or other words of like purport indicate that the
goods were loaded by the shipper; and if such statement be true the
issuer shall not be liable for damages caused by the improper loading.
But their omission does not imply liability for such damages.
(5) The shipper shall be deemed to have guaranteed to the issuer the
accuracy at the time of shipment of the description, marks, labels,
number, kind, quantity, condition and weight, as furnished by him; and
the shipper shall indemnify the issuer against damage caused by
inaccuracies in such particulars. The right of the issuer to such
indemnity shall in no way limit his responsibility and liability under
the contract of carriage to any person other than the shipper.
Section 7--302. Through Bills of Lading and Similar Documents.
(1) The issuer of a through bill of lading or other document embodying
an undertaking to be performed in part by persons acting as its agents
or by connecting carriers is liable to anyone entitled to recover on the
document for any breach by such other persons or by a connecting carrier
of its obligation under the document but to the extent that the bill
covers an undertaking to be performed overseas or in territory not
contiguous to the continental United States or an undertaking including
matters other than transportation this liability may be varied by
agreement of the parties.
(2) Where goods covered by a through bill of lading or other document
embodying an undertaking to be performed in part by persons other than
the issuer are received by any such person, he is subject with respect
to his own performance while the goods are in his possession to the
obligation of the issuer. His obligation is discharged by delivery of
the goods to another such person pursuant to the document, and does not
include liability for breach by any other such persons or by the issuer.
(3) The issuer of such through bill of lading or other document shall
be entitled to recover from the connecting carrier or such other person
in possession of the goods when the breach of the obligation under the
document occurred, the amount it may be required to pay to anyone
entitled to recover on the document therefor, as may be evidenced by any
receipt, judgment, or transcript thereof, and the amount of any expense
reasonably incurred by it in defending any action brought by anyone
entitled to recover on the document therefor.
Section 7--303. Diversion; Reconsignment; Change of Instructions.
(1) Unless the bill of lading otherwise provides, the carrier may
deliver the goods to a person or destination other than that stated in
the bill or may otherwise dispose of the goods on instructions from
(a) the holder of a negotiable bill; or
(b) the consignor on a non-negotiable bill notwithstanding
contrary instructions from the consignee; or
(c) the consignee on a non-negotiable bill in the absence of
contrary instructions from the consignor, if the goods have
arrived at the billed destination or if the consignee is in
possession of the bill; or
(d) the consignee on a non-negotiable bill if he is entitled as
against the consignor to dispose of them.
(2) Unless such instructions are noted on a negotiable bill of lading,
a person to whom the bill is duly negotiated can hold the bailee
according to the original terms.
Section 7--304. Bills of Lading in a Set.
(1) Except where customary in overseas transportation, a bill of
lading must not be issued in a set of parts. The issuer is liable for
damages caused by violation of this subsection.
(2) Where a bill of lading is lawfully drawn in a set of parts, each
of which is numbered and expressed to be valid only if the goods have
not been delivered against any other part, the whole of the parts
constitute one bill.
(3) Where a bill of lading is lawfully issued in a set of parts and
different parts are negotiated to different persons, the title of the
holder to whom the first due negotiation is made prevails as to both the
document and the goods even though any later holder may have received
the goods from the carrier in good faith and discharged the carrier`s
obligation by surrender of his part.
(4) Any person who negotiates or transfers a single part of a bill of
lading drawn in a set is liable to holders of that part as if it were
the whole set.
(5) The bailee is obliged to deliver in accordance with Part 4 of this
Article against the first presented part of a bill of lading lawfully
drawn in a set. Such delivery discharges the bailee`s obligation on the
whole bill.
Section 7--305. Destination Bills.
(1) Instead of issuing a bill of lading to the consignor at the place
of shipment a carrier may at the request of the consignor procure the
bill to be issued at destination or at any other place designated in the
request.
(2) Upon request of anyone entitled as against the carrier to control
the goods while in transit and on surrender of any outstanding bill of
lading or other receipt covering such goods, the issuer may procure a
substitute bill to be issued at any place designated in the request.
Section 7--306. Altered Bills of Lading.
An unauthorized alteration or filling in of a blank in a bill of
lading leaves the bill enforceable according to its original tenor.
Section 7--307. Lien of Carrier.
(1) A carrier has a lien on the goods covered by a bill of lading for
charges subsequent to the date of its receipt of the goods for storage
or transportation (including demurrage and terminal charges) and for
expenses necessary for preservation of the goods incident to their
transportation or reasonably incurred in their sale pursuant to law. But
against a purchaser for value of a negotiable bill of lading a carrier`s
lien is limited to charges stated in the bill or the applicable tariffs,
or if no charges are stated then to a reasonable charge.
(2) A lien for charges and expenses under subsection (1) on goods
which the carrier was required by law to receive for transportation is
effective against the consignor or any person entitled to the goods
unless the carrier had notice that the consignor lacked authority to
subject the goods to such charges and expenses. Any other lien under
subsection (1) is effective against the consignor and any person who
permitted the bailor to have control or possession of the goods unless
the carrier had notice that the bailor lacked such authority.
(3) A carrier loses his lien on any goods which he voluntarily
delivers or which he unjustifiably refuses to deliver.
Section 7--308. Enforcement of Carrier`s Lien.
(1) A carrier`s lien may be enforced by public or private sale of the
goods, in bloc or in parcels, at any time or place and on any terms
which are commercially reasonable, after notifying all persons known to
claim an interest in the goods. Such notification must include a
statement of the amount due, the nature of the proposed sale and the
time and place of any public sale. The fact that a better price could
have been obtained by a sale at a different time or in a different
method from that selected by the carrier is not of itself sufficient to
establish that the sale was not made in a commercially reasonable
manner. If the carrier either sells the goods in the usual manner in any
recognized market therefor or if he sells at the price current in such
market at the time of his sale or if he has otherwise sold in conformity
with commercially reasonable practices among dealers in the type of
goods sold he has sold in a commercially reasonable manner. A sale of
more goods than apparently necessary to be offered to ensure
satisfaction of the obligation is not commercially reasonable except in
cases covered by the preceding sentence.
(2) Before any sale pursuant to this section any person claiming a
right in the goods may pay the amount necessary to satisfy the lien and
the reasonable expenses incurred under this section. In that event the
goods must not be sold, but must be retained by the carrier subject to
the terms of the bill and this Article.
(3) The carrier may buy at any public sale pursuant to this section.
(4) A purchaser in good faith of goods sold to enforce a carrier`s
lien takes the goods free of any rights of persons against whom the lien
was valid, despite noncompliance by the carrier with the requirements of
this section.
(5) The carrier may satisfy his lien from the proceeds of any sale
pursuant to this section but must hold the balance, if any, for delivery
on demand to any person to whom he would have been bound to deliver the
goods.
(6) The rights provided by this section shall be in addition to all
other rights allowed by law to a creditor against his debtor.
(7) A carrier`s lien may be enforced in accordance with either
subsection (1) or the procedure set forth in subsection (2) of Section
7--210.
(8) The carrier is liable for damages caused by failure to comply with
the requirements for sale under this section and in case of willful
violation is liable for conversion.
Section 7--309. Duty of Care; Contractual Limitation of Carrier`s
Liability.
(1) A carrier who issues a bill of lading whether negotiable or
non-negotiable must exercise the degree of care in relation to the goods
which a reasonably careful man would exercise under like circumstances.
This subsection does not repeal or change any law or rule of law which
imposes liability upon a common carrier for damages not caused by its
negligence.
(2) Damages may be limited by a provision that the carrier`s liability
shall not exceed a value stated in the document if the carrier`s rates
are dependent upon value and the consignor by the carrier`s tariff is
afforded an opportunity to declare a higher value or a value as lawfully
provided in the tariff, or where no tariff is filed he is otherwise
advised of such opportunity; but no such limitation is effective with
respect to the carrier`s liability for conversion to its own use.
(3) Reasonable provisions as to the time and manner of presenting
claims and instituting actions based on the shipment may be included in
a bill of lading or tariff.
