(a)  A document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the goods and that did not:

(1)  Deliver or entrust the goods or any document of title covering the goods to the bailor or the bailor’s nominee with:

(A)  Actual or apparent authority to ship, store, or sell;

(B)  Power to obtain delivery under § 6A-7-403; or

(C)  Power of disposition under § 6A-2-403, 6A-2.1-304(2), 6A-2.1-305(2), 6A-9-320, or 6A-9-321(c) or other statute or rule of law.

(2)  Acquiesce in the procurement by the bailor or its nominee of any document.

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Terms Used In Rhode Island General Laws 6A-7-503

  • Carrier: means a person that issues a bill of lading. See Rhode Island General Laws 6A-7-102
  • Delivery order: means a record that contains an order to deliver goods directed to a warehouse, carrier, or other person that in the ordinary course of business issues warehouse receipts or bills of lading. See Rhode Island General Laws 6A-7-102
  • Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See Rhode Island General Laws 6A-7-102
  • Issuer: means a bailee that issues a document of title or, in the case of an unaccepted delivery order, the person that orders the possessor of goods to deliver. See Rhode Island General Laws 6A-7-102
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
  • Statute: A law passed by a legislature.
  • Warehouse: means a person engaged in the business of storing goods for hire. See Rhode Island General Laws 6A-7-102

(b)  Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. That title may be defeated under § 6A-7-504 to the same extent as the rights of the issuer or a transferee from the issuer.

(c)  Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of any person to which a bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with Part 4 pursuant to its own bill of lading discharges the carrier’s obligation to deliver.

History of Section.
P.L. 2006, ch. 112, § 6; P.L. 2006, ch. 135, § 6.