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This entry was published on 2014-12-26
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SECTION 7-302
Through Bills of Lading and Similar Documents of Title
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 7, PART 3
Section 7--302. Through Bills of Lading and Similar Documents of Title.

(a) The issuer of a through bill of lading, or other document of title
embodying an undertaking to be performed in part by a person acting as
its agent or by a performing carrier, is liable to any person entitled
to recover on the bill or other document for any breach by the other
person or the performing carrier of its obligation under the bill or
other document. However, to the extent that the bill or other document
covers an undertaking to be performed overseas or in territory not
contiguous to the continental United States or an undertaking including
matters other than transportation, this liability for breach by the
other person or the performing carrier may be varied by agreement of the
parties.

(b) If goods covered by a through bill of lading or other document of
title embodying an undertaking to be performed in part by a person other
than the issuer are received by that person, the person is subject, with
respect to its own performance while the goods are in its possession, to
the obligation of the issuer. The person's obligation is discharged by
delivery of the goods to another person pursuant to the bill or other
document and does not include liability for breach by any other person
or by the issuer.

(c) The issuer of a through bill of lading or other document of title
described in subsection (a) is entitled to recover from the performing
carrier, or other person in possession of the goods when the breach of
the obligation under the bill or other document occurred:

(1) the amount it may be required to pay to any person entitled to
recover on the bill or other document for the breach, as may be
evidenced by any receipt, judgment, or transcript of judgment; and

(2) the amount of any expense reasonably incurred by the issuer in
defending any action commenced by any person entitled to recover on the
bill or other document for the breach.