- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 7. Warehouse Receipts, Bills of Lading, and Other Documents of Title
- Section 504. Rights Acquired in the Absence of Due Negotiation; Effect of Diversion; Seller's Stoppage of Delivery.
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. Document of Title to Goods Defeated in Certain Cases.
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. Endorser Not a Guarantor For Other Parties.
AS 45.07.504. Rights Acquired in the Absence of Due Negotiation; Effect of Diversion; Seller's Stoppage of Delivery.
- (a) A transferee of a document, whether negotiable or not, to whom the document has been delivered but not duly negotiated
acquires the title and rights that the transferor had or had actual authority to convey.
- (b) In the case of a nonnegotiable document, until (but not after) the bailee receives notification of the transfer, the
rights of the transferee may be defeated
- (1) by those creditors of the transferor who could treat the sale as void under AS 45.02.402
- (2) by a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or
received notification of the buyer's rights; or
- (3) as against the bailee by good faith dealings of the bailee with the transferor.
- (c) A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading that causes
the bailee not to deliver to the consignee defeats the consignee's title to the goods if they have been delivered to a
buyer in ordinary course of business and in any event defeats the consignee's rights against the bailee.
- (d) Delivery under a nonnegotiable document may be stopped by a seller under AS 45.02.705
, and subject to the requirement of due notification set out in AS 45.02.705
. A bailee honoring the seller's instructions is entitled to be indemnified by the seller against a resulting loss or
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