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District of Columbia Official Code 2001 Edition. |
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Division V. Local Business Affairs. |
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Title 28. Commercial Instruments and Transactions. |
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Subtitle I. Uniform Commercial Code. |
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Article 7. Warehouse Receipts, Bills of Lading and Other Documents of Title. |
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Part 5. Warehouse Receipts and Bills of Lading: Negotiation and Transfer.
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Current through October 23, 2012
Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under the next following section, then unless otherwise agreed he warrants to his immediate purchaser only in addition to any warranty made in selling the goods:
(a) That the document is genuine; and
(b) That he has no knowledge of any fact which would impair its validity or worth; and
(c) That his negotiation or transfer is rightful and fully effective with respect to the title to the document and the goods it represents.
(Dec. 30, 1963, 77 Stat. 730, Pub. L. 88-243, § 1.)
HISTORICAL AND STATUTORY NOTES
UNIFORM COMMERCIAL CODE COMMENT
Prior Uniform Statutory Provision
Section 36, Uniform Sales Act; Section 44, Uniform Warehouse Receipts Act; Section 35, Uniform Bills of Lading Act.Changes
Consolidated and rewritten without change in policy.Purposes of Changes
1. This section omits provisions of the prior acts on warranties as to the goods as unnecessary and incomplete. It is unnecessary because such warranties derive from the contract of sale and not from the transfer of the documents. The fact that transfer of control occurs by way of a document of title does not limit or displace the ordinary obligations of a seller. The former provision, moreover, was incomplete because it did not expressly include all of the warranties which might rest upon a seller under such circumstances. This Act handles the problem by means of the precautionary reference to "any warranty made in selling the goods." If the transfer of documents attends or follows the making of a contract for the sale of goods, the general obligations on warranties as to the goods (Sections 2-312 through 2-318) are brought to bear as well as the special warranties under this section.
2. The limited warranties of a delivering or collecting intermediary are stated in Section 7-508.
Cross References
Point 1: Sections 2-312 through 2-318.
Point 2: Section 7-508.
Definitional Cross References
"Document". Section 7-102.
"Document of title". Section 1-201.
"Genuine". Section 1-201.
"Goods". Section 7-102.
"Person". Section 1-201.
"Purchaser". Section 1-201.
"Value". Section 1-201.
Prior Codifications
1981 Ed., § 28:7-507.
1973 Ed., § 28:7-507.
