§ 28:7-401. Irregularities in issue of receipt or bill or conduct of issuer.

Current through October 23, 2012

The obligations imposed by this article on an issuer apply to a document of title regardless of the fact that:

(a) The document may not comply with the requirements of this article or of any other law or regulation regarding its issue, form or content; or

(b) The issuer may have violated laws regulating the conduct of his business; or

(d) The person issuing the document does not come within the definition of warehouseman if it purports to be a warehouse receipt.

                
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(Dec. 30, 1963, 77 Stat. 727, Pub. L. 88-243, § 1.)

HISTORICAL AND STATUTORY NOTES

UNIFORM COMMERCIAL CODE COMMENT

Prior Uniform Statutory Provision

Section 20, Uniform Warehouse Receipts Act; Section 23, Uniform Bills of Lading Act.

Changes

Most of the material is new; the uniform act sections cited deal only with non-receipt and misdescription.

Purposes of Changes and New Matter

The bailee's liability on his document despite non-receipt or misdescription of the goods is affirmed in Sections 7-203 and 7-301. The purpose of this section is to make it clear that regardless of irregularities a document which falls within the definition of document of title imposes on the issuer the obligations stated in this Article. For example, a bailee will not be permitted to avoid his obligation to deliver the goods (Section 7-403) or his obligation of due care with respect to them (Sections 7-204 and 7-309) by taking the position that no valid "document" was issued because he failed to file a statutory bond or did not pay stamp taxes or did not disclose the place of storage in the document. Sanctions against violations of statutory or administrative duties with respect to documents should be limited to revocation of license or other measures prescribed by the regulation imposing the duty. As to the continuing vitality of regulations, in addition to those found in this Article, of documents of title, see Sections 7-103 and 10-103.

Cross References

Sections 7-103, 7-203, 7-204, 7-301, 7-309 and 10-103.

Definitional Cross References

"Bailee". Section 7-102.

"Document". Section 7-102.

"Document of title". Section 1-201.

"Goods". Section 7-102.

"Issuer". Section 7-102.

"Person". Section 1-201.

"Warehouse receipt". Section 1-201.

"Warehouseman". Section 7-102.

Prior Codifications

1981 Ed., § 28:7-401.

1973 Ed., § 28:7-401.