AB688,23,7 4407.303 Diversion; reconsignment; change of instructions. (1) Unless
5the bill of lading otherwise provides, a carrier may deliver the goods to a person or
6destination other than that stated in the bill or may otherwise dispose of the goods,
7without liability for misdelivery, on instructions from any of the following:
AB688,23,88 (a) The holder of a negotiable bill.
AB688,23,109 (b) The consignor on a nonnegotiable bill even if the consignee has given
10contrary instructions.
AB688,23,1311 (c) The consignee on a nonnegotiable bill in the absence of contrary instructions
12from the consignor, if the goods have arrived at the billed destination or if the
13consignee is in possession of the tangible bill or in control of the electronic bill.
AB688,23,1514 (d) The consignee on a nonnegotiable bill, if the consignee is entitled as against
15the consignor to dispose of the goods.
AB688,23,18 16(2) Unless instructions described in sub. (1) are included in a negotiable bill of
17lading, a person to which the bill is duly negotiated may hold the bailee according to
18the original terms.
AB688,23,21 19407.304 Tangible bills of lading in a set. (1) Except as customary in
20international transportation, a tangible bill of lading may not be issued in a set of
21parts. The issuer is liable for damages caused by violation of this subsection.
AB688,23,24 22(2) If a tangible bill of lading is lawfully issued in a set of parts, each of which
23contains an identification code and is expressed to be valid only if the goods have not
24been delivered against any other part, the whole of the parts constitutes one bill.
AB688,24,5
1(3) If a tangible negotiable bill of lading is lawfully issued in a set of parts and
2different parts are negotiated to different persons, the title of the holder to which the
3first due negotiation is made prevails as to both the document of title and the goods
4even if any later holder may have received the goods from the carrier in good faith
5and discharged the carrier's obligation by surrendering its part.
AB688,24,7 6(4) A person that negotiates or transfers a single part of a tangible bill of lading
7issued in a set is liable to holders of that part as if it were the whole set.
AB688,24,10 8(5) The bailee is obliged to deliver in accordance with subch. IV against the first
9presented part of a tangible bill of lading lawfully issued in a set. Delivery in this
10manner discharges the bailee's obligation on the whole bill.
AB688,24,14 11407.305 Destination bills. (1) Instead of issuing a bill of lading to the
12consignor at the place of shipment, a carrier, at the request of the consignor, may
13procure the bill to be issued at destination or at any other place designated in the
14request.
AB688,24,18 15(2) Upon request of any person entitled as against a carrier to control the goods
16while in transit and on surrender of possession or control of any outstanding bill of
17lading or other receipt covering the goods, the issuer, subject to s. 407.105, may
18procure a substitute bill to be issued at any place designated in the request.
AB688,24,20 19407.306 Altered bills of lading. An unauthorized alteration or filling in of
20a blank in a bill of lading leaves the bill enforceable according to its original tenor.
AB688,25,3 21407.307 Lien of carrier. (1) A carrier has a lien on the goods covered by a
22bill of lading or on the proceeds thereof in its possession for charges after the date
23of the carrier's receipt of the goods for storage or transportation, including
24demurrage and terminal charges, and for expenses necessary for preservation of the
25goods incident to their transportation or reasonably incurred in their sale pursuant

1to law. However, against a purchaser for value of a negotiable bill of lading, a
2carrier's lien is limited to charges stated in the bill or the applicable tariffs or, if no
3charges are stated, a reasonable charge.
AB688,25,10 4(2) A lien for charges and expenses under sub. (1) on goods that the carrier was
5required by law to receive for transportation is effective against the consignor or any
6person entitled to the goods unless the carrier had notice that the consignor lacked
7authority to subject the goods to those charges and expenses. Any other lien under
8sub. (1) is effective against the consignor and any person that permitted the bailor
9to have control or possession of the goods unless the carrier had notice that the bailor
10lacked authority.
AB688,25,12 11(3) A carrier loses its lien on any goods that it voluntarily delivers or
12unjustifiably refuses to deliver.
AB688,26,2 13407.308 Enforcement of carrier's lien. (1) A carrier's lien on goods may
14be enforced by public or private sale of the goods, in bulk or in packages, at any time
15or place and on any terms that are commercially reasonable, after notifying all
16persons known to claim an interest in the goods. The notification must include a
17statement of the amount due, the nature of the proposed sale, and the time and place
18of any public sale. The fact that a better price could have been obtained by a sale at
19a different time or in a different method from that selected by the carrier is not of
20itself sufficient to establish that the sale was not made in a commercially reasonable
21manner. The carrier has sold goods in a commercially reasonable manner if the
22carrier sells the goods in the usual manner in any recognized market therefor, sells
23at the price current in that market at the time of the sale, or has otherwise sold in
24conformity with commercially reasonable practices among dealers in the type of
25goods sold. A sale of more goods than apparently necessary to be offered to ensure

1satisfaction of the obligation is not commercially reasonable, except in cases covered
2by the preceding sentence.
AB688,26,7 3(2) Before any sale pursuant to this section, any person claiming a right in the
4goods may pay the amount necessary to satisfy the lien and the reasonable expenses
5incurred in complying with this section. In that event, the goods may not be sold but
6must be retained by the carrier, subject to the terms of the bill of lading and this
7chapter.
AB688,26,8 8(3) A carrier may buy at any public sale pursuant to this section.
AB688,26,11 9(4) A purchaser in good faith of goods sold to enforce a carrier's lien takes the
10goods free of any rights of persons against which the lien was valid, despite the
11carrier's noncompliance with this section.
AB688,26,14 12(5) A carrier may satisfy its lien from the proceeds of any sale pursuant to this
13section but shall hold the balance, if any, for delivery on demand to any person to
14which the carrier would have been bound to deliver the goods.
AB688,26,16 15(6) The rights provided by this section are in addition to all other rights allowed
16by law to a creditor against a debtor.
AB688,26,18 17(7) A carrier's lien may be enforced pursuant to either sub. (1) or the procedure
18set forth in s. 407.210 (2).
AB688,26,21 19(8) A carrier is liable for damages caused by failure to comply with the
20requirements for sale under this section and, in case of willful violation, is liable for
21conversion.
AB688,27,2 22407.309 Duty of care; contractual limitation of carrier's liability. (1)
23A carrier that issues a bill of lading, whether negotiable or nonnegotiable, shall
24exercise the degree of care in relation to the goods which a reasonably careful person
25would exercise under similar circumstances. This subsection does not affect any

1statute, regulation, or rule of law that imposes liability upon a common carrier for
2damages not caused by its negligence.
AB688,27,8 3(2) Damages may be limited by a term in the bill of lading or in a transportation
4agreement that the carrier's liability may not exceed a value stated in the bill or
5transportation agreement if the carrier's rates are dependent upon value and the
6consignor is afforded an opportunity to declare a higher value and the consignor is
7advised of the opportunity. However, such a limitation is not effective with respect
8to the carrier's liability for conversion to its own use.
AB688,27,11 9(3) Reasonable provisions as to the time and manner of presenting claims and
10commencing actions based on the shipment may be included in a bill of lading or a
11transportation agreement.
AB688,27,1212 Subchapter Iv
AB688,27,1413 warehouse receipts and bills of
14 lading: general obligations
AB688,27,17 15407.401 Irregularities in issue of receipt or bill or conduct of issuer.
16The obligations imposed by this chapter on an issuer apply to a document of title even
17if any of the following are satisfied:
AB688,27,19 18(1) The document does not comply with the requirements of this chapter or of
19any other statute, rule, or regulation regarding its issue, form, or content.
AB688,27,20 20(2) The issuer violated laws regulating the conduct of its business.
AB688,27,22 21(3) The goods covered by the document were owned by the bailee when the
22document was issued.
AB688,27,24 23(4) The person issuing the document is not a warehouse but the document
24purports to be a warehouse receipt.
AB688,28,7
1407.402 Duplicate document of title; overissue. A duplicate or any other
2document of title purporting to cover goods already represented by an outstanding
3document of the same issuer does not confer any right in the goods, except as
4provided in the case of tangible bills of lading in a set of parts, overissue of documents
5for fungible goods, substitutes for lost, stolen, or destroyed documents, or substitute
6documents issued pursuant to s. 407.105. The issuer is liable for damages caused by
7its overissue or failure to identify a duplicate document by a conspicuous notation.
AB688,28,11 8407.403 Obligation of warehouse or carrier to deliver; excuse. (1) A
9bailee shall deliver the goods to a person entitled under a document of title if the
10person complies with subs. (2) and (3), unless and to the extent that the bailee
11establishes any of the following:
AB688,28,1312 (a) Delivery of the goods to a person whose receipt was rightful as against the
13claimant.
AB688,28,1514 (b) Damage to or delay, loss, or destruction of the goods for which the bailee is
15not liable.
AB688,28,1716 (c) Previous sale or other disposition of the goods in lawful enforcement of a lien
17or on a warehouse's lawful termination of storage.
AB688,28,1918 (d) The exercise by a seller of its right to stop delivery pursuant to s. 402.705
19or by a lessor of its right to stop delivery pursuant to s. 411.526.
AB688,28,2020 (e) A diversion, reconsignment, or other disposition pursuant to s. 407.303.
AB688,28,2221 (f) Release, satisfaction, or any other fact affording a personal defense against
22the claimant.
AB688,28,2323 (g) Any other lawful excuse.
AB688,29,3
1(2) A person claiming goods covered by a document of title shall satisfy the
2bailee's lien if the bailee so requests or the bailee is prohibited by law from delivering
3the goods until the charges are paid.
AB688,29,5 4(3) Unless a person claiming the goods is one against which the document of
5title does not confer a right under s. 407.503 (1), all of the following apply:
AB688,29,86 (a) The person claiming under a document shall surrender possession or control
7of any outstanding negotiable document covering the goods for cancellation or
8indication of partial deliveries.
AB688,29,119 (b) The bailee shall cancel the document or conspicuously indicate in the
10document the partial delivery or be liable to any person to which the document is duly
11negotiated.
AB688,29,15 12407.404 No liability for good faith delivery pursuant to document of
13title.
A bailee that in good faith has received goods and delivered or otherwise
14disposed of the goods according to the terms of a document of title or pursuant to this
15chapter is not liable for the goods even if any of the following apply:
AB688,29,17 16(1) The person from which the bailee received the goods did not have authority
17to procure the document or to dispose of the goods.
AB688,29,19 18(2) The person to which the bailee delivered the goods did not have authority
19to receive the goods.
AB688,29,2020 Subchapter V
AB688,29,2221 warehouse receipts and bills of
22 lading: negotiation and transfer
AB688,29,24 23407.501 Form of negotiation and requirements of due negotiation. (1)
24The following rules apply to a negotiable tangible document of title:
AB688,30,4
1(a) If the document's original terms run to the order of a named person, the
2document is negotiated by the named person's endorsement and delivery. After the
3named person's endorsement in blank or to bearer, any person may negotiate the
4document by delivery alone.
AB688,30,65 (b) If the document's original terms run to bearer, it is negotiated by delivery
6alone.
AB688,30,97 (c) If the document's original terms run to the order of a named person and it
8is delivered to the named person, the effect is the same as if the document had been
9negotiated.
AB688,30,1110 (d) Negotiation of the document after it has been endorsed to a named person
11requires endorsement by the named person as well as delivery.
AB688,30,1612 (e) A document is duly negotiated if it is negotiated in the manner stated in this
13subsection to a holder that purchases it in good faith, without notice of any defense
14against or claim to it on the part of any person, and for value, unless it is established
15that the negotiation is not in the regular course of business or financing or involves
16receiving the document in settlement or payment of a monetary obligation.
AB688,30,17 17(2) The following rules apply to a negotiable electronic document of title:
AB688,30,2018 (a) If the document's original terms run to the order of a named person or to
19bearer, the document is negotiated by delivery of the document to another person.
20Endorsement by the named person is not required to negotiate the document.
AB688,30,2321 (b) If the document's original terms run to the order of a named person and the
22named person has control of the document, the effect is the same as if the document
23had been negotiated.
AB688,31,324 (c) A document is duly negotiated if it is negotiated in the manner stated in this
25subsection to a holder that purchases it in good faith, without notice of any defense

1against or claim to it on the part of any person, and for value, unless it is established
2that the negotiation is not in the regular course of business or financing or involves
3taking delivery of the document in settlement or payment of a monetary obligation.
AB688,31,5 4(3) Endorsement of a nonnegotiable document of title neither makes it
5negotiable nor adds to the transferee's rights.
AB688,31,8 6(4) The naming in a negotiable bill of lading of a person to be notified of the
7arrival of the goods does not limit the negotiability of the bill or constitute notice to
8a purchaser of the bill of any interest of that person in the goods.
AB688,31,11 9407.502 Rights acquired by due negotiation. (1) Subject to ss. 407.205
10and 407.503, a holder to which a negotiable document of title has been duly
11negotiated acquires thereby all of the following:
AB688,31,1212 (a) Title to the document.
AB688,31,1313 (b) Title to the goods.
AB688,31,1514 (c) All rights accruing under the law of agency or estoppel, including rights to
15goods delivered to the bailee after the document was issued.
AB688,31,2116 (d) The direct obligation of the issuer to hold or deliver the goods according to
17the terms of the document free of any defense or claim by the issuer except those
18arising under the terms of the document or under this chapter. In the case of a
19delivery order, the bailee's obligation accrues only upon the bailee's acceptance of the
20delivery order and the obligation acquired by the holder is that the issuer and any
21endorser will procure the acceptance of the bailee.
AB688,31,25 22(2) Subject to s. 407.503, title and rights acquired by due negotiation are not
23defeated by any stoppage of the goods represented by the document of title or by
24surrender of the goods by the bailee and are not impaired even if any of the following
25apply:
AB688,32,2
1(a) The due negotiation or any prior due negotiation constituted a breach of
2duty.
AB688,32,53 (b) Any person has been deprived of possession of a negotiable tangible
4document or control of a negotiable electronic document by misrepresentation, fraud,
5accident, mistake, duress, loss, theft, or conversion.
AB688,32,76 (c) A previous sale or other transfer of the goods or document has been made
7to a 3rd person.
AB688,32,11 8407.503 Document of title to goods defeated in certain cases. (1) A
9document of title confers no right in goods against a person that before issuance of
10the document had a legal interest or a perfected security interest in the goods and
11that did not do any of the following:
AB688,32,1612 (a) Deliver or entrust the goods or any document covering the goods to the bailor
13or the bailor's nominee with actual or apparent authority to ship, store, or sell; with
14power to obtain delivery under s. 407.403; or with power of disposition under s.
15402.403, 409.320, 409.321 (3), 411.304 (2), or 411.305 (2), or other statute or rule of
16law.
AB688,32,1717 (b) Acquiesce in the procurement by the bailor or its nominee of any document.
AB688,32,21 18(2) Title to goods based upon an unaccepted delivery order is subject to the
19rights of any person to which a negotiable warehouse receipt or bill of lading covering
20the goods has been duly negotiated. That title may be defeated under s. 407.504 to
21the same extent as the rights of the issuer or a transferee from the issuer.
AB688,32,25 22(3) Title to goods based upon a bill of lading issued to a freight forwarder is
23subject to the rights of any person to which a bill issued by the freight forwarder is
24duly negotiated. However, delivery by the carrier in accordance with subch. IV
25pursuant to its own bill of lading discharges the carrier's obligation to deliver.
AB688,33,5
1407.504 Rights acquired in absence of due negotiation; effect of
2diversion; stoppage of delivery.
(1) A transferee of a document of title, whether
3negotiable or nonnegotiable, to which the document has been delivered but not duly
4negotiated, acquires the title and rights that its transferor had or had actual
5authority to convey.
AB688,33,8 6(2) In the case of a nonnegotiable document of title, until but not after the bailee
7receives notice of the transfer, the rights of the transferee may be defeated by any of
8the following:
AB688,33,109 (a) Those creditors of the transferor that could treat the transfer as void under
10s. 402.402 or 411.308.
AB688,33,1211 (b) A buyer from the transferor in ordinary course of business if the bailee has
12delivered the goods to the buyer or received notification of the buyer's rights.
AB688,33,1413 (c) A lessee from the transferor in ordinary course of business if the bailee has
14delivered the goods to the lessee or received notification of the lessee's rights.
AB688,33,1515 (d) As against the bailee, by good faith dealings of the bailee with the transferor.
AB688,33,20 16(3) A diversion or other change of shipping instructions by the consignor in a
17nonnegotiable bill of lading which causes the bailee not to deliver the goods to the
18consignee defeats the consignee's title to the goods if the goods have been delivered
19to a buyer in ordinary course of business or a lessee in ordinary course of business
20and in any event defeats the consignee's rights against the bailee.
AB688,33,25 21(4) Delivery of the goods pursuant to a nonnegotiable document of title may be
22stopped by a seller under s. 402.705 or a lessor under s. 411.526, subject to the
23requirements of due notification in those sections. A bailee honoring the seller's or
24lessor's instructions is entitled to be indemnified by the seller or lessor against any
25resulting loss or expense.
AB688,34,3
1407.505 Endorser not guarantor for other parties. The endorsement of
2a tangible document of title issued by a bailee does not make the endorser liable for
3any default by the bailee or previous endorsers.
AB688,34,7 4407.506 Delivery without endorsement; right to compel endorsement.
5The transferee of a negotiable tangible document of title has a specifically
6enforceable right to have its transferor supply any necessary endorsement, but the
7transfer becomes a negotiation only as of the time the endorsement is supplied.
Loading...
Loading...