400.7-302. Through bills of lading and similar documents.

Through bills of lading and similar documents.

400.7-302. (1) The issuer of a through bill of lading orother document embodying an undertaking to be performed in partby persons acting as its agents or by connecting carriers isliable to anyone entitled to recover on the document for anybreach by such other persons or by a connecting carrier of itsobligation under the document but to the extent that the billcovers an undertaking to be performed overseas or in territorynot contiguous to the continental United States or an undertakingincluding matters other than transportation this liability may bevaried by agreement of the parties.

(2) Where goods covered by a through bill of lading or otherdocument embodying an undertaking to be performed in part bypersons other than the issuer are received by any such person, heis subject with respect to his own performance while the goodsare in his possession to the obligation of the issuer. Hisobligation is discharged by delivery of the goods to another suchperson pursuant to the document, and does not include liabilityfor breach by any other such persons or by the issuer.

(3) The issuer of such through bill of lading or otherdocument shall be entitled to recover from the connecting carrieror such other person in possession of the goods when the breachof the obligation under the document occurred, the amount it maybe required to pay to anyone entitled to recover on the documenttherefor, as may be evidenced by any receipt, judgment, ortranscript thereof, and the amount of any expense reasonablyincurred by it in defending any action brought by anyone entitledto recover on the document therefor.

(L. 1963 p. 503 § 7-302)