§80105 — Title 49 Transportation | U.S. Code

Summary

When a negotiable bill of lading is transferred, the person who gets it also gets title to any goods the transferor, consignor, and consignee could lawfully sell to a good‑faith buyer. The carrier that issued the bill must hold and deliver the goods to that new holder under the bill’s terms. If the transfer was for value in good faith, that holder’s right to the goods beats a seller’s lien or right to stop shipment, even if the carrier knew of the seller’s claim. The carrier can give the goods to an unpaid seller only if the bill is first surrendered and canceled. Except for that rule, mortgagees and lienholders keep their rights against buyers who had the goods right before the carrier picked them up.

Title 49, §80105

Transportation — Source: USLM XML via OLRC

(a)When a negotiable bill of lading is negotiated—

(1)the person to whom it is negotiated acquires the title to the goods that—

(A)the person negotiating the bill had the ability to convey to a purchaser in good faith for value; and

(B)the consignor and consignee had the ability to convey to such a purchaser; and

(2)the common carrier issuing the bill becomes obligated directly to the person to whom the bill is negotiated to hold possession of the goods under the terms of the bill the same as if the carrier had issued the bill to that person.

(b)When a negotiable bill of lading is negotiated to a person for value in good faith, that person’s right to the goods for which the bill was issued is superior to a seller’s lien or to a right to stop the transportation of the goods. This subsection applies whether the negotiation is made before or after the common carrier issuing the bill receives notice of the seller’s claim. The carrier may deliver the goods to an unpaid seller only if the bill first is surrendered for cancellation.

(c)Except as provided in subsection (b) of this section, this chapter does not limit a right of a mortgagee or lien holder having a mortgage or lien on goods against a person that purchased for value in good faith from the owner, and got possession of the goods immediately before delivery to the common carrier.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 80105(a)49 App.:111.Aug. 29, 1916, ch. 415, §§ 31, 39, 40, 39 Stat. 543, 544. 80105(b)49 App.:119. 80105(c)49 App.:120. In subsection (a)(1), before subclause (A), the word “duly” is omitted as surplus. In subsection (b), the words “right . . . is superior” are substituted for “no . . . shall defeat the rights of” for clarity. The words “right to stop the transportation” are substituted for “right of stoppage in transitu” for clarity. In subsection (c), the word “remedies” is omitted as being included in “right”. The words “whose mortgage or lien on goods would be valid, apart from this chapter” are omitted as unnecessary because of the restatement. The words “which are subject to the mortgage or lien” are omitted as unnecessary.

§80105 Title and Rights Affected by Negotiation

Summary

Title 49, §80105

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata