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This entry was published on 2014-12-26
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SECTION 7-203
Liability for Nonreceipt or Misdescription
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 7, PART 2
Section 7--203. Liability for Nonreceipt or Misdescription.

A party to, or purchaser for, value in good faith of a document of
title, other than a bill of lading, that relies upon the description of
the goods in the document may recover from the issuer damages caused by
the nonreceipt or misdescription of the goods, except to the extent
that:

(1) the document conspicuously indicates that the issuer does not know
whether all or part of the goods in fact were received or conform to the
description, such as a case in which the description is in terms of
marks or labels or kind, quantity, or condition, or the receipt or
description is qualified by "contents, condition, and quality unknown",
"said to contain", or words of similar import, if the indication is
true; or

(2) the party or purchaser otherwise has notice of the nonreceipt or
misdescription.