§ 6A-2-705 - Seller's stoppage of delivery in transit or otherwise. - Rhode Island Statutes

SECTION 6A-2-705

   § 6A-2-705  Seller's stoppage of deliveryin transit or otherwise. – (1) The seller may stop delivery of goods in the possession of a carrier orother bailee when he or she discovers the buyer to be insolvent (§6A-2-702) and may stop delivery of carload, truckload, planeload, or largershipments of express or freight when the buyer repudiates or fails to make apayment due before delivery or if for any other reason the seller has a rightto withhold or reclaim the goods.

   (2) As against such buyer the seller may stop delivery until:

   (a) Receipt of the goods by the buyer; or

   (b) Acknowledgment to the buyer by any bailee of the goodsexcept a carrier that the bailee holds the goods for the buyer; or

   (c) Such acknowledgment to the buyer by a carrier byreshipment or as warehouseperson; or

   (d) Negotiation to the buyer of any negotiable document oftitle covering the goods.

   (3) To stop delivery the seller must so notify as to enablethe bailee by reasonable diligence to prevent delivery of the goods.

   (b) After such notification the bailee must hold and deliverthe goods according to the directions of the seller but the seller is liable tothe bailee for any ensuing charges or damages.

   (c) If a negotiable document of title has been issued forgoods the bailee is not obliged to obey a notification to stop until surrenderof possession or control of the document.

   (d) A carrier who has issued a nonnegotiable bill of ladingis not obliged to obey a notification to stop received from a person other thanthe consignor.