AB481-ASA1,13,53 (e) The rate of storage and handling charges, but if goods are stored under a
4field warehousing arrangement, a statement of that fact is sufficient on a
5nonnegotiable receipt.
AB481-ASA1,13,66 (f) A description of the goods or the packages containing them.
AB481-ASA1,13,77 (g) The signature of the warehouse or its agent.
AB481-ASA1,13,98 (h) If the receipt is issued for goods that the warehouse owns, either solely,
9jointly, or in common with others, the fact of that ownership.
AB481-ASA1,13,1510 (i) A statement of the amount of advances made and of liabilities incurred for
11which the warehouse claims a lien or security interest, but if the precise amount of
12advances made or of liabilities incurred is, at the time of the issue of the receipt,
13unknown to the warehouse or to its agent that issued the receipt, a statement of the
14fact that advances have been made or liabilities incurred and the purpose of the
15advances or liabilities is sufficient.
AB481-ASA1,13,18 16(3) A warehouse may insert in its receipt any terms that are not contrary to chs.
17401 to 411 and do not impair its obligation of delivery under s. 407.403 or its duty of
18care under s. 407.204. Any contrary provisions are ineffective.
AB481-ASA1,13,23 19407.203 Liability for nonreceipt or misdescription. A party to or
20purchaser for value in good faith of a document of title, other than a bill of lading,
21that relies upon the description of the goods in the document may recover from the
22issuer damages caused by the nonreceipt or misdescription of the goods, except to the
23extent that any of the following apply:
AB481-ASA1,14,4 24(1) The document conspicuously indicates that the issuer does not know
25whether all or part of the goods in fact were received or conform to the description,

1such as a case in which the description is in terms of marks or labels or kind, quantity,
2or condition, or the receipt or description is qualified by "contents, condition, and
3quality unknown," "said to contain," or words of similar import, if the indication is
4true.
AB481-ASA1,14,6 5(2) The party or purchaser otherwise has notice of the nonreceipt or
6misdescription.
AB481-ASA1,14,12 7407.204 Duty of care; contractual limitation of warehouse's liability.
8(1) A warehouse is liable for damages for loss of or injury to the goods caused by its
9failure to exercise care with regard to the goods that a reasonably careful person
10would exercise under similar circumstances. However, unless otherwise agreed, the
11warehouse is not liable for damages that could not have been avoided by the exercise
12of that care.
AB481-ASA1,14,21 13(2) Damages may be limited by a term in the warehouse receipt or storage
14agreement limiting the amount of liability in case of loss or damage beyond which
15the warehouse is not liable. Such a limitation is not effective with respect to the
16warehouse's liability for conversion to its own use. The warehouse's liability, on
17request of the bailor in a record at the time of signing such storage agreement or
18within a reasonable time after receipt of the warehouse receipt, may be increased on
19part or all of the goods covered by the storage agreement or the warehouse receipt.
20In this event, increased rates may be charged based on an increased valuation of the
21goods.
AB481-ASA1,14,24 22(3) Reasonable provisions as to the time and manner of presenting claims and
23commencing actions based on the bailment may be included in the warehouse receipt
24or storage agreement.
AB481-ASA1,15,5
1407.205 Title under warehouse receipt defeated in certain cases. A
2buyer in ordinary course of business of fungible goods sold and delivered by a
3warehouse that is also in the business of buying and selling such goods takes the
4goods free of any claim under a warehouse receipt even if the receipt is negotiable
5and has been duly negotiated.
AB481-ASA1,15,13 6407.206 Termination of storage at warehouse's option. (1) A warehouse,
7by giving notice to the person on whose account the goods are held and any other
8person known to claim an interest in the goods, may require payment of any charges
9and removal of the goods from the warehouse at the termination of the period of
10storage fixed by the document of title or, if a period is not fixed, within a stated period
11not less than 30 days after the warehouse gives notice. If the goods are not removed
12before the date specified in the notice, the warehouse may sell them pursuant to s.
13407.210.
AB481-ASA1,15,19 14(2) If a warehouse in good faith believes that goods are about to deteriorate or
15decline in value to less than the amount of its lien within the time provided in sub.
16(1) and s. 407.210, the warehouse may specify in the notice given under sub. (1) any
17reasonable shorter time for removal of the goods and, if the goods are not removed,
18may sell them at public sale held not less than one week after a single advertisement
19or posting.
AB481-ASA1,16,2 20(3) If, as a result of a quality or condition of the goods of which the warehouse
21did not have notice at the time of deposit, the goods are a hazard to other property,
22the warehouse facilities, or other persons, the warehouse may sell the goods at public
23or private sale without advertisement or posting on reasonable notification to all
24persons known to claim an interest in the goods. If the warehouse, after a reasonable

1effort, is unable to sell the goods, it may dispose of them in any lawful manner and
2does not incur liability by reason of that disposition.
AB481-ASA1,16,5 3(4) A warehouse shall deliver the goods to any person entitled to them under
4this chapter upon due demand made at any time before sale or other disposition
5under this section.
AB481-ASA1,16,8 6(5) A warehouse may satisfy its lien from the proceeds of any sale or disposition
7under this section but shall hold the balance for delivery on the demand of any person
8to which the warehouse would have been bound to deliver the goods.
AB481-ASA1,16,12 9407.207 Goods must be kept separate; fungible goods. (1) Unless the
10warehouse receipt provides otherwise, a warehouse shall keep separate the goods
11covered by each receipt so as to permit at all times identification and delivery of those
12goods. However, different lots of fungible goods may be commingled.
AB481-ASA1,16,17 13(2) If different lots of fungible goods are commingled, the goods are owned in
14common by the persons entitled thereto and the warehouse is severally liable to each
15owner for that owner's share. If, because of overissue, a mass of fungible goods is
16insufficient to meet all the receipts the warehouse has issued against it, the persons
17entitled include all holders to which overissued receipts have been duly negotiated.
AB481-ASA1,16,22 18407.208 Altered warehouse receipts. If a blank in a negotiable tangible
19warehouse receipt has been filled in without authority, a good faith purchaser for
20value and without notice of the lack of authority may treat the insertion as
21authorized. Any other unauthorized alteration leaves any tangible or electronic
22warehouse receipt enforceable against the issuer according to its original tenor.
AB481-ASA1,17,14 23407.209 Lien of warehouse. (1) A warehouse has a lien against the bailor
24on the goods covered by a warehouse receipt or storage agreement or on the proceeds
25thereof in its possession for charges for storage or transportation, including

1demurrage and terminal charges, insurance, labor, or other charges, present or
2future, in relation to the goods, and for expenses necessary for preservation of the
3goods or reasonably incurred in their sale pursuant to law. If the person on whose
4account the goods are held is liable for similar charges or expenses in relation to other
5goods whenever deposited, and it is stated in the warehouse receipt or storage
6agreement that a lien is claimed for charges and expenses in relation to other goods,
7the warehouse also has a lien against the goods covered by the warehouse receipt or
8storage agreement or on the proceeds thereof in its possession for those charges and
9expenses, whether or not the other goods have been delivered by the warehouse.
10However, as against a person to which a negotiable warehouse receipt is duly
11negotiated, a warehouse's lien is limited to charges in an amount or at a rate specified
12in the warehouse receipt or, if no charges are so specified, to a reasonable charge for
13storage of the specific goods covered by the receipt subsequent to the date of the
14receipt.
AB481-ASA1,17,18 15(2) The warehouse may also reserve a security interest under ch. 409 against
16the bailor for the maximum amount specified on the receipt for charges other than
17those specified in sub. (1), such as for money advanced and interest. A security
18interest is governed by ch. 409.
AB481-ASA1,17,25 19(3) A warehouse's lien for charges and expenses under sub. (1) or a security
20interest under sub. (2) is also effective against any person that so entrusted the bailor
21with possession of the goods that a pledge of them by the bailor to a good faith
22purchaser for value would have been valid. However, the lien or security interest is
23not effective against a person that before issuance of a document of title had a legal
24interest or a perfected security interest in the goods and that did not do any of the
25following:
AB481-ASA1,18,5
1(a) Deliver or entrust the goods or any document covering the goods to the bailor
2or the bailor's nominee with actual or apparent authority to ship, store, or sell; or
3with power to obtain delivery under s. 407.403; or with power of disposition under
4s. 402.403, 409.320, 409.321 (3), 411.304 (2), or 411.305 (2), or other statute or rule
5of law.
AB481-ASA1,18,66 (b) Acquiesce in the procurement by the bailor or its nominee of any document.
AB481-ASA1,18,11 7(4) A warehouse's lien on household goods for charges and expenses in relation
8to the goods under sub. (1) is also effective against all persons if the depositor was
9the legal possessor of the goods at the time of deposit. In this subsection, "household
10goods" means furniture, furnishings, or personal effects used by the depositor in a
11dwelling.
AB481-ASA1,18,13 12(5) A warehouse loses its lien on any goods that it voluntarily delivers or
13unjustifiably refuses to deliver.
AB481-ASA1,19,3 14407.210 Enforcement of warehouse's lien. (1) Except as otherwise
15provided in sub. (2), a warehouse's lien may be enforced by public or private sale of
16the goods, in bulk or in packages, at any time or place and on any terms that are
17commercially reasonable, after notifying all persons known to claim an interest in
18the goods. The notification must include a statement of the amount due, the nature
19of the proposed sale, and the time and place of any public sale. The fact that a better
20price could have been obtained by a sale at a different time or in a different method
21from that selected by the warehouse is not of itself sufficient to establish that the sale
22was not made in a commercially reasonable manner. The warehouse has sold in a
23commercially reasonable manner if the warehouse sells the goods in the usual
24manner in any recognized market therefor, sells at the price current in that market
25at the time of the sale, or has otherwise sold in conformity with commercially

1reasonable practices among dealers in the type of goods sold. A sale of more goods
2than apparently necessary to be offered to ensure satisfaction of the obligation is not
3commercially reasonable, except in cases covered by the preceding sentence.
AB481-ASA1,19,6 4(2) A warehouse's lien on goods, other than goods stored by a merchant in the
5course of its business, may be enforced only if all of the following requirements are
6satisfied:
AB481-ASA1,19,77 (a) All persons known to claim an interest in the goods must be notified.
AB481-ASA1,19,128 (b) The notification must include an itemized statement of the claim, a
9description of the goods subject to the lien, a demand for payment within a specified
10time not less than 10 days after receipt of the notification, and a conspicuous
11statement that unless the claim is paid within that time the goods will be advertised
12for sale and sold by auction at a specified time and place.
AB481-ASA1,19,1313 (c) The sale must conform to the terms of the notification.
AB481-ASA1,19,1514 (d) The sale must be held at the nearest suitable place to where the goods are
15held or stored.
AB481-ASA1,19,2316 (e) After the expiration of the time given in the notification, an advertisement
17of the sale must be published once a week for 2 weeks consecutively in a newspaper
18of general circulation where the sale is to be held. The advertisement must include
19a description of the goods, the name of the person on whose account the goods are
20being held, and the time and place of the sale. The sale must take place at least 15
21days after the first publication. If there is no newspaper of general circulation where
22the sale is to be held, the advertisement must be posted at least 10 days before the
23sale in not less than 6 conspicuous places in the neighborhood of the proposed sale.
AB481-ASA1,20,3 24(3) Before any sale pursuant to this section, any person claiming a right in the
25goods may pay the amount necessary to satisfy the lien and the reasonable expenses

1incurred in complying with this section. In that event, the goods may not be sold but
2must be retained by the warehouse subject to the terms of the receipt and this
3chapter.
AB481-ASA1,20,4 4(4) A warehouse may buy at any public sale held pursuant to this section.
AB481-ASA1,20,7 5(5) A purchaser in good faith of goods sold to enforce a warehouse's lien takes
6the goods free of any rights of persons against which the lien was valid, despite the
7warehouse's noncompliance with this section.
AB481-ASA1,20,10 8(6) A warehouse may satisfy its lien from the proceeds of any sale pursuant to
9this section but shall hold the balance, if any, for delivery on demand to any person
10to which the warehouse would have been bound to deliver the goods.
AB481-ASA1,20,12 11(7) The rights provided by this section are in addition to all other rights allowed
12by law to a creditor against a debtor.
AB481-ASA1,20,14 13(8) If a lien is on goods stored by a merchant in the course of its business, the
14lien may be enforced in accordance with sub. (1) or (2).
AB481-ASA1,20,17 15(9) A warehouse is liable for damages caused by failure to comply with the
16requirements for sale under this section and, in case of willful violation, is liable for
17conversion.
AB481-ASA1,20,1818 Subchapter III
AB481-ASA1,20,2019 Bills of lading: Special
20 provisions
AB481-ASA1,21,7 21407.301 Liability for nonreceipt or misdescription; "said to contain";
22"shipper's load and count"; improper handling.
(1) A consignee of a
23nonnegotiable bill of lading which has given value in good faith, or a holder to which
24a negotiable bill has been duly negotiated, relying upon the description of the goods
25in the bill or upon the date shown in the bill, may recover from the issuer damages

1caused by the misdating of the bill or the nonreceipt or misdescription of the goods,
2except to the extent that the document of title indicates that the issuer does not know
3whether any part or all of the goods in fact were received or conform to the
4description, such as in a case in which the description is in terms of marks or labels
5or kind, quantity, or condition or the receipt or description is qualified by "contents
6or condition of contents of packages unknown," "said to contain," "shipper's weight,
7load, and count," or words of similar import, if that indication is true.
AB481-ASA1,21,12 8(2) If goods are loaded by the issuer of the bill of lading, the issuer shall count
9the packages of goods if shipped in packages and ascertain the kind and quantity if
10shipped in bulk and words such as "shipper's weight, load, and count," or words of
11similar import indicating that the description was made by the shipper are
12ineffective except as to goods concealed by packages.
AB481-ASA1,21,17 13(3) If bulk goods are loaded by a shipper that makes available to the issuer of
14the bill of lading adequate facilities for weighing those goods, the issuer shall
15ascertain the kind and quantity within a reasonable time after receiving the
16shipper's request in a record to do so. In that case, "shipper's weight" or words of
17similar import are ineffective.
AB481-ASA1,21,22 18(4) The issuer, by including in the bill of lading the words "shipper's weight,
19load, and count," or words of similar import, may indicate that the goods were loaded
20by the shipper, and, if that statement is true, the issuer is not liable for damages
21caused by the improper loading. However, omission of such words does not imply
22liability for damages caused by improper loading.
AB481-ASA1,22,3 23(5) A shipper guarantees to the issuer the accuracy at the time of shipment of
24the description, marks, labels, number, kind, quantity, condition, and weight, as
25furnished by the shipper, and the shipper shall indemnify the issuer against damage

1caused by inaccuracies in those particulars. This right of the issuer to that indemnity
2does not limit its responsibility or liability under the contract of carriage to any
3person other than the shipper.
AB481-ASA1,22,12 4407.302 Through bills of lading and similar documents of title. (1) The
5issuer of a through bill of lading or other document of title embodying an undertaking
6to be performed in part by a person acting as its agent or by a performing carrier is
7liable to any person entitled to recover on the document for any breach by the other
8person or the performing carrier of its obligation under the document. However, to
9the extent that the bill covers an undertaking to be performed overseas or in territory
10not contiguous to the continental United States or an undertaking including matters
11other than transportation, this liability for breach by the other person or the
12performing carrier may be varied by agreement of the parties.
AB481-ASA1,22,19 13(2) If goods covered by a through bill of lading or other document of title
14embodying an undertaking to be performed in part by a person other than the issuer
15are received by that person, the person is subject, with respect to its own performance
16while the goods are in its possession, to the obligation of the issuer. The person's
17obligation is discharged by delivery of the goods to another person pursuant to the
18document and does not include liability for breach by any other person or by the
19issuer.
AB481-ASA1,22,23 20(3) The issuer of a through bill of lading or other document of title described
21in sub. (1) is entitled to recover from the performing carrier, or other person in
22possession of the goods when the breach of the obligation under the document
23occurred, all of the following:
AB481-ASA1,23,3
1(a) The amount it may be required to pay to any person entitled to recover on
2the document for the breach, as may be evidenced by any receipt, judgment, or
3transcript of judgment.
AB481-ASA1,23,64 (b) The amount of any expense reasonably incurred by the issuer in defending
5any action commenced by any person entitled to recover on the document for the
6breach.
AB481-ASA1,23,10 7407.303 Diversion; reconsignment; change of instructions. (1) Unless
8the bill of lading otherwise provides, a carrier may deliver the goods to a person or
9destination other than that stated in the bill or may otherwise dispose of the goods,
10without liability for misdelivery, on instructions from any of the following:
AB481-ASA1,23,1111 (a) The holder of a negotiable bill.
AB481-ASA1,23,1312 (b) The consignor on a nonnegotiable bill even if the consignee has given
13contrary instructions.
AB481-ASA1,23,1614 (c) The consignee on a nonnegotiable bill in the absence of contrary instructions
15from the consignor, if the goods have arrived at the billed destination or if the
16consignee is in possession of the tangible bill or in control of the electronic bill.
AB481-ASA1,23,1817 (d) The consignee on a nonnegotiable bill, if the consignee is entitled as against
18the consignor to dispose of the goods.
AB481-ASA1,23,21 19(2) Unless instructions described in sub. (1) are included in a negotiable bill of
20lading, a person to which the bill is duly negotiated may hold the bailee according to
21the original terms.
AB481-ASA1,23,24 22407.304 Tangible bills of lading in a set. (1) Except as customary in
23international transportation, a tangible bill of lading may not be issued in a set of
24parts. The issuer is liable for damages caused by violation of this subsection.
AB481-ASA1,24,3
1(2) If a tangible bill of lading is lawfully issued in a set of parts, each of which
2contains an identification code and is expressed to be valid only if the goods have not
3been delivered against any other part, the whole of the parts constitutes one bill.
AB481-ASA1,24,8 4(3) If a tangible negotiable bill of lading is lawfully issued in a set of parts and
5different parts are negotiated to different persons, the title of the holder to which the
6first due negotiation is made prevails as to both the document of title and the goods
7even if any later holder may have received the goods from the carrier in good faith
8and discharged the carrier's obligation by surrendering its part.
AB481-ASA1,24,10 9(4) A person that negotiates or transfers a single part of a tangible bill of lading
10issued in a set is liable to holders of that part as if it were the whole set.
AB481-ASA1,24,13 11(5) The bailee is obliged to deliver in accordance with subch. IV against the first
12presented part of a tangible bill of lading lawfully issued in a set. Delivery in this
13manner discharges the bailee's obligation on the whole bill.
AB481-ASA1,24,17 14407.305 Destination bills. (1) Instead of issuing a bill of lading to the
15consignor at the place of shipment, a carrier, at the request of the consignor, may
16procure the bill to be issued at destination or at any other place designated in the
17request.
AB481-ASA1,24,21 18(2) Upon request of any person entitled as against a carrier to control the goods
19while in transit and on surrender of possession or control of any outstanding bill of
20lading or other receipt covering the goods, the issuer, subject to s. 407.105, may
21procure a substitute bill to be issued at any place designated in the request.
AB481-ASA1,24,23 22407.306 Altered bills of lading. An unauthorized alteration or filling in of
23a blank in a bill of lading leaves the bill enforceable according to its original tenor.
AB481-ASA1,25,6 24407.307 Lien of carrier. (1) A carrier has a lien on the goods covered by a
25bill of lading or on the proceeds thereof in its possession for charges after the date

1of the carrier's receipt of the goods for storage or transportation, including
2demurrage and terminal charges, and for expenses necessary for preservation of the
3goods incident to their transportation or reasonably incurred in their sale pursuant
4to law. However, against a purchaser for value of a negotiable bill of lading, a
5carrier's lien is limited to charges stated in the bill or the applicable tariffs or, if no
6charges are stated, a reasonable charge.
AB481-ASA1,25,13 7(2) A lien for charges and expenses under sub. (1) on goods that the carrier was
8required by law to receive for transportation is effective against the consignor or any
9person entitled to the goods unless the carrier had notice that the consignor lacked
10authority to subject the goods to those charges and expenses. Any other lien under
11sub. (1) is effective against the consignor and any person that permitted the bailor
12to have control or possession of the goods unless the carrier had notice that the bailor
13lacked authority.
AB481-ASA1,25,15 14(3) A carrier loses its lien on any goods that it voluntarily delivers or
15unjustifiably refuses to deliver.
AB481-ASA1,26,5 16407.308 Enforcement of carrier's lien. (1) A carrier's lien on goods may
17be enforced by public or private sale of the goods, in bulk or in packages, at any time
18or place and on any terms that are commercially reasonable, after notifying all
19persons known to claim an interest in the goods. The notification must include a
20statement of the amount due, the nature of the proposed sale, and the time and place
21of any public sale. The fact that a better price could have been obtained by a sale at
22a different time or in a different method from that selected by the carrier is not of
23itself sufficient to establish that the sale was not made in a commercially reasonable
24manner. The carrier has sold goods in a commercially reasonable manner if the
25carrier sells the goods in the usual manner in any recognized market therefor, sells

1at the price current in that market at the time of the sale, or has otherwise sold in
2conformity with commercially reasonable practices among dealers in the type of
3goods sold. A sale of more goods than apparently necessary to be offered to ensure
4satisfaction of the obligation is not commercially reasonable, except in cases covered
5by the preceding sentence.
AB481-ASA1,26,10 6(2) Before any sale pursuant to this section, any person claiming a right in the
7goods may pay the amount necessary to satisfy the lien and the reasonable expenses
8incurred in complying with this section. In that event, the goods may not be sold but
9must be retained by the carrier, subject to the terms of the bill of lading and this
10chapter.
AB481-ASA1,26,11 11(3) A carrier may buy at any public sale pursuant to this section.
AB481-ASA1,26,14 12(4) A purchaser in good faith of goods sold to enforce a carrier's lien takes the
13goods free of any rights of persons against which the lien was valid, despite the
14carrier's noncompliance with this section.
AB481-ASA1,26,17 15(5) A carrier may satisfy its lien from the proceeds of any sale pursuant to this
16section but shall hold the balance, if any, for delivery on demand to any person to
17which the carrier would have been bound to deliver the goods.
AB481-ASA1,26,19 18(6) The rights provided by this section are in addition to all other rights allowed
19by law to a creditor against a debtor.
AB481-ASA1,26,21 20(7) A carrier's lien may be enforced pursuant to either sub. (1) or the procedure
21set forth in s. 407.210 (2).
AB481-ASA1,26,24 22(8) A carrier is liable for damages caused by failure to comply with the
23requirements for sale under this section and, in case of willful violation, is liable for
24conversion.
AB481-ASA1,27,6
1407.309 Duty of care; contractual limitation of carrier's liability. (1)
2A carrier that issues a bill of lading, whether negotiable or nonnegotiable, shall
3exercise the degree of care in relation to the goods which a reasonably careful person
4would exercise under similar circumstances. This subsection does not affect any
5statute, regulation, or rule of law that imposes liability upon a common carrier for
6damages not caused by its negligence.
AB481-ASA1,27,12 7(2) Damages may be limited by a term in the bill of lading or in a transportation
8agreement that the carrier's liability may not exceed a value stated in the bill or
9transportation agreement if the carrier's rates are dependent upon value and the
10consignor is afforded an opportunity to declare a higher value and the consignor is
11advised of the opportunity. However, such a limitation is not effective with respect
12to the carrier's liability for conversion to its own use.
AB481-ASA1,27,15 13(3) Reasonable provisions as to the time and manner of presenting claims and
14commencing actions based on the shipment may be included in a bill of lading or a
15transportation agreement.
AB481-ASA1,27,1616 Subchapter Iv
AB481-ASA1,27,1817 warehouse receipts and bills of
18 lading: general obligations
AB481-ASA1,27,21 19407.401 Irregularities in issue of receipt or bill or conduct of issuer.
20The obligations imposed by this chapter on an issuer apply to a document of title even
21if any of the following are satisfied:
AB481-ASA1,27,23 22(1) The document does not comply with the requirements of this chapter or of
23any other statute, rule, or regulation regarding its issue, form, or content.
AB481-ASA1,27,24 24(2) The issuer violated laws regulating the conduct of its business.
AB481-ASA1,28,2
1(3) The goods covered by the document were owned by the bailee when the
2document was issued.
AB481-ASA1,28,4 3(4) The person issuing the document is not a warehouse but the document
4purports to be a warehouse receipt.
Loading...
Loading...