2001 Minnesota Statutes

     336.7-503 Document of title to goods defeated in certain 
  cases. 

    (1) A document of title confers no right in goods against a 
 person who before issuance of the document had a legal interest 
 or a perfected security interest in them and who neither 

    (a) delivered or entrusted them or any document of title 
 covering them to the bailor or the bailor's nominee with actual 
 or apparent authority to ship, store or sell or with power to 
 obtain delivery under this article (section 336.7-403) or with 
 of disposition under this chapter (sections 336.2-403 and 
 336.9-320) or other statute or rule of law; nor 

    (b) acquiesced in the procurement by the bailor or the 
 bailor's nominee of any document of title.  

    (2) Title to goods based upon an unaccepted delivery order 
 is subject to the rights of anyone to whom a negotiable 
 warehouse receipt or bill of lading covering the goods has been 
 duly negotiated.  Such a title may be defeated under the next 
 section to the same extent as the rights of the issuer or a 
 transferee from the issuer.  

    (3) Title to goods based upon a bill of lading issued to a 
 freight forwarder is subject to the rights of anyone to whom a 
 bill issued by the freight forwarder is duly negotiated; but 
 delivery by the carrier in accordance with part 4 of this 
 article pursuant to its own bill of lading discharges the 
 carrier's obligation to deliver.  

    HIST: 1965 c 811 s 336.7-503; 1986 c 444; 2000 c 399 art 2 s 
 14 

*   NOTE:  The amendment to this section by Laws 2000, chapter 
*399, article 2, section 14, is effective July 1, 2001.  Laws 
*2000, chapter 399, article 1, section 130.