§ 80107. — Warranties and liability.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 49USC80107]
TITLE 49--TRANSPORTATION
SUBTITLE X--MISCELLANEOUS
CHAPTER 801--BILLS OF LADING
Sec. 80107. Warranties and liability
(a) General Rule.--Unless a contrary intention appears, a person
negotiating or transferring a bill of lading for value warrants that--
(1) the bill is genuine;
(2) the person has the right to transfer the bill and the title
to the goods described in the bill;
(3) the person does not know of a fact that would affect the
validity or worth of the bill; and
(4) the goods are merchantable or fit for a particular purpose
when merchantability or fitness would have been implied if the
agreement of the parties had been to transfer the goods without a
bill of lading.
(b) Security for Debt.--A person holding a bill of lading as
security for a debt and in good faith demanding or receiving payment of
the debt from another person does not warrant by the demand or receipt--
(1) the genuineness of the bill; or
(2) the quantity or quality of the goods described in the bill.
(c) Duplicates.--A common carrier issuing a bill of lading, on the
face of which is the word ``duplicate'' or another word indicating that
the bill is not an original bill, is liable the same as a person that
represents and warrants that the bill is an accurate copy of an original
bill properly issued. The carrier is not otherwise liable under the
bill.
(d) Indorser Liability.--Indorsement of a bill of lading does not
make the indorser liable for failure of the common carrier or a previous
indorser to fulfill its obligations.
(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1349.)
Historical and Revision Notes
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Revised Section Source (U.S. Code) Source (Statutes at Large)
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80107(a).............................. 49 App.:114. Aug. 29, 1916, ch. 415, Secs. 15, 34-
36, 39 Stat. 541, 543.
80107(b).............................. 49 App.:116.
80107(c).............................. 49 App.:95.
80107(d).............................. 49 App.:115.
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In subsection (a), before clause (1), the words ``by indorsement or
delivery'' are omitted as surplus. In clause (4), the words
``merchantability or fitness'' are substituted for ``such warranties'',
and the words ``the goods without a bill of lading'' are substituted for
``without a bill the goods represented thereby'', for clarity.
In subsection (b), before clause (1), the words ``person holding''
are substituted for ``mortgagee or pledgee or other holder'' because
they are inclusive. The words ``from another person'' are substituted
for ``whether from a party to a draft drawn for such debt or from any
other person'' to eliminate unnecessary words. The words ``does not
warrant by the demand or receipt'' are substituted for ``shall not be
deemed by so doing to represent or warrant'' for clarity.
In subsection (c), the words ``A common carrier issuing . . . is
liable'' are substituted for ``plainly shall impose upon the carrier
issuing the same the liability'' for clarity and to eliminate
unnecessary words. The words ``The carrier is not otherwise liable under
the bill'' are substituted for ``but no other liability'' for clarity.
In subsection (d), the word ``respective'' is omitted as
unnecessary.
