8.7-503 - Document to goods defeated in certain cases.
§ 8.7-503. Document to goods defeated in certain cases.
(1) A document confers no right in goods against a person who before issuanceof the document had a legal interest or a perfected security interest in themand who neither:
(a) delivered or entrusted them or any document covering them to the bailoror his nominee with (i) actual or apparent authority to ship, store or sell,(ii) power to obtain delivery under § 8.7-403, or (iii) power of dispositionunder §§ 8.2-403, 8.2A-304(2), 8.2A-305(2), 8.9A-320, or § 8.9A-321(c) orother statute or rule of law; nor
(b) acquiesced in the procurement by the bailor or his nominee of anydocument.
(2) Title to goods based upon an unaccepted delivery order is subject to therights of anyone to whom a negotiable warehouse receipt or bill of ladingcovering the goods has been duly negotiated. Such a title may be defeatedunder § 8.7-504 to the same extent as the rights of the issuer or atransferee from the issuer.
(3) Title to goods based upon a bill of lading issued to a freight forwarderis subject to the rights of anyone to whom a bill issued by the freightforwarder is duly negotiated. However, delivery by the carrier in accordancewith Part 4 of this title pursuant to its own bill of lading discharges thecarrier's obligation to deliver.
(Code 1950, § 61-44; 1964, c. 219; 2000, c. 1007; 2004, c. 200.)