) A warehouse receipt, bill of lading or other document of title is negotiable.
(a) If by its terms the goods are to be delivered to bearer or to the order of a named person; or
(b) Where recognized in overseas trade, if it runs to a named person or assigns.

(2) Any other document is nonnegotiable. A bill of lading in which it is stated that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against a written order signed by the same or another named person.

(3) A nonnegotiable warehouse receipt and a nonnegotiable bill of lading must be conspicuously (Section 1201) marked Anonnegotiable.@ In
case of the bailee’s failure to do so, a holder of the document who purchased it for value supposing it to be negotiable may, at his option, treat such document as imposing upon the bailee the same liabilities he would have incurred had the document been negotiable.