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This entry was published on 2014-12-26
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SECTION 2-705
Seller's Stoppage of Delivery in Transit or Otherwise
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 7
Section 2--705. Seller's Stoppage of Delivery in Transit or Otherwise.

(1) The seller may stop delivery of goods in the possession of a
carrier or other bailee when he discovers the buyer to be insolvent
(Section 2--702) and may stop delivery of carload, truckload, planeload
or larger shipments of express or freight when the buyer repudiates or
fails to make a payment due before delivery or if for any other reason
the seller has a right to withhold or reclaim the goods.

(2) As against such buyer the seller may stop delivery until

(a) receipt of the goods by the buyer; or

(b) acknowledgment to the buyer by any bailee of the goods except

a carrier that the bailee holds the goods for the buyer; or

(c) such acknowledgment to the buyer by a carrier by reshipment

or as a warehouse; or

(d) negotiation to the buyer of any negotiable document of title

covering the goods.

(3) (a) To stop delivery the seller must so notify as to enable the

bailee by reasonable diligence to prevent delivery of the

goods.

(b) After such notification the bailee must hold and deliver the

goods according to the directions of the seller but the

seller is liable to the bailee for any ensuing charges or

damages.

(c) If a negotiable document of title has been issued for goods

the bailee is not obliged to obey a notification to stop

until surrender of possession or control of the document.

(d) A carrier who has issued a non-negotiable bill of lading is

not obliged to obey a notification to stop received from a

person other than the consignor.