Irregularities in issue of receipt or bill or conduct of issuer

84-7-401. Irregularities in issue of receipt or bill or conduct of issuer. The obligations imposed by this article on an issuer apply to a document of title even if: (1) The document does not comply with the requirements of this article or of any other statute, rule, or regulation regarding its issuance, form, or content; (2) the issuer violated laws regulating the conduct of its business; (3) the goods covered by the document were owned by the bailee when the document was issued; or (4) the person issuing the document is not a warehouse but the document purports to be a warehouse receipt. History: L. 2007, ch. 90, § 26; July 1, 2008. KANSAS COMMENT, 1996 Under this section, the obligations of Article 7 apply to any issuer of a document of title even though there are certain irregularities in the document, the transaction or the issuer's business. "Issuer" is defined in 84-7-102; "document of title" is defined in 84-1-201(15). Liability under this section is somewhat more extensive than under prior law, under which a bailee could avoid liability in many instances where a warehouse receipt lacked essential terms. See former K.S.A. 82-120. For application of this section, see State ex rel. Public Service Comm. v. R. F. Gunkelman & Sons, Inc., 219 N.W.2d 853 (N. Dak. 1974). Revisor's Note: Former section 84-7-401 repealed by L. 2007, ch. 90, § 78 and the number reassigned to the current text.