§80105 Title and rights affected by negotiation

Summary

When a negotiable bill of lading is transferred, the person who receives it gets title to the goods if the transferor and the shipper and named receiver could have sold those goods to an honest buyer who paid for them. The carrier that issued the bill must hold and deliver the goods to that new holder under the bill’s terms as if the carrier had issued the bill to that person. If the holder got the bill in good faith and paid for it, their right to the goods is stronger than a seller’s lien or the seller’s right to stop shipment. The carrier may only give the goods back to an unpaid seller after the bill is surrendered and canceled. Except for the rule about good-faith holders above, these rules do not reduce a mortgagee’s or lienholder’s rights against a buyer who paid in good faith and took possession of the goods right before delivery to the carrier.