§ 25-7-203. Liability for nonreceipt or misdescription. - North Carolina Statutes

§ 25‑7‑203. Liability for nonreceipt or misdescription.

A party to or purchaser forvalue in good faith of a document of title, other than a bill of lading, thatrelies upon the description of the goods in the document may recover from theissuer damages caused by the nonreceipt or misdescription of the goods, exceptto the extent that:

(1)        The documentconspicuously indicates that the issuer does not know whether all or part ofthe goods in fact were received or conform to the description, such as a case inwhich the description is in terms of marks or labels or kind, quantity, orcondition, or the receipt or description is qualified by "contents,condition, and quality unknown," "said to contain," or words ofsimilar import, if the indication is true; or

(2)        The party orpurchaser otherwise has notice of the nonreceipt or misdescription. (1917, c. 37, s. 20; C.S., s.4060; 1931, c. 358, s. 1; 1965, c. 700, s. 1; 2006‑112, s. 25.)