2705 - Stoppage by seller of delivery in transit or otherwise.
§ 2705. Stoppage by seller of delivery in transit or otherwise. (a) General rule.--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 2702) 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. (b) When seller loses right.--As against such buyer the seller may stop delivery until: (1) receipt of the goods by the buyer; (2) acknowledgment to the buyer by any bailee of the goods, except a carrier, that the bailee holds the goods for the buyer; (3) such acknowledgment to the buyer by a carrier by reshipment or as a warehouse; or (4) negotiation to the buyer of any negotiable document of title covering the goods. (c) Notice and compliance.-- (1) To stop delivery the seller must so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods. (2) 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. (3) 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. (4) A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor. (Apr. 16, 2008, P.L.57, No.13, eff. 60 days) 2008 Amendment. Act 13 amended subsecs. (b)(3) and (c)(3). Cross References. Section 2705 is referred to in sections 2702, 2703, 2707, 7403, 7504 of this title.