70A-2-705 - Seller's stoppage of delivery in transit or otherwise. - Utah Statutes

70A-2-705. Seller's stoppage of delivery in transit or otherwise.
(1) The seller may stop delivery of goods in the possession of a carrier or other baileewhen he discovers the buyer to be insolvent as provided in Section 70A-2-702 and may stopdelivery of carload, truckload, planeload, or larger shipments of express or freight when thebuyer repudiates or fails to make a payment due before delivery or if for any other reason theseller has a right to withhold or reclaim the goods.
(2) As against such buyer the seller may stop delivery until:
(a) receipt of the goods by the buyer;
(b) acknowledgment to the buyer by any bailee of the goods except a carrier that thebailee holds the goods for the buyer;
(c) such acknowledgment to the buyer by a carrier by reshipment or as warehouse; or
(d) negotiation to the buyer of any negotiable document of title covering the goods.
(3) (a) To stop delivery, the seller must so notify as to enable the bailee by reasonablediligence to prevent delivery of the goods.
(b) After such notification, the bailee must hold and deliver the goods according to thedirections of the seller but the seller is liable to the bailee for any ensuing charges or damages.
(c) If a negotiable document of title has been issued for goods, the bailee is not obliged toobey a notification to stop until surrender of possession or control of the document.
(d) A carrier who has issued a nonnegotiable bill of lading is not obliged to obey anotification to stop received from a person other than the consignor.

Amended by Chapter 42, 2006 General Session