Nebraska Uniform Commercial Code 7-401

UCC 7-401

7-401.

Irregularities in issue of receipt or bill or conduct of issuer.

The obligations imposed by this article on an issuer apply to a document of title even if:

(1) the document does not comply with the requirements of this article or of any other statute, rule, or regulation regarding its issuance, form, or content;

(2) the issuer violated laws regulating the conduct of its business;

(3) the goods covered by the document were owned by the bailee when the document was issued; or

(4) the person issuing the document is not a warehouse but the document purports to be a warehouse receipt.

Annotations

  • COMMENT

  • Prior Uniform Statutory Provision: Former section 7-401.

  • Changes: Changes for style only.

  • Purposes:

  • The bailee's liability on its document despite nonreceipt or misdescription of the goods is affirmed in sections 7-203 and 7-301. The purpose of this section is to make it clear that regardless of irregularities a document which falls within the definition of document of title imposes on the issuer the obligations stated in this article. For example, a bailee will not be permitted to avoid its obligation to deliver the goods (section 7-403) or its obligation of due care with respect to them (sections 7-204 and 7-309) by taking the position that no valid "document" was issued because it failed to file a statutory bond or did not pay stamp taxes or did not disclose the place of storage in the document. Tate v. Action Moving & Storage, Inc., 383 S.E.2d 229 (N.C. App. 1989), rev. denied 389 S.E.2d 104 (N.C. 1990). Sanctions against violations of statutory or administrative duties with respect to documents should be limited to revocation of license or other measures prescribed by the regulation imposing the duty. See section 7-103.

  • Cross References:

  • Sections 7-103, 7-203, 7-204, 7-301, and 7-309.

  • Definitional Cross References:

  • "Bailee". Section 7-102.

  • "Document of title". Section 1-201.

  • "Goods". Section 7-102.

  • "Issuer". Section 7-102.

  • "Person". Section 1-201.

  • "Warehouse receipt". Section 1-201.

  • "Warehouse". Section 7-102.