70A-2a-526 - Lessor's stoppage of delivery in transit or otherwise. - Utah Statutes

70A-2a-526. Lessor's stoppage of delivery in transit or otherwise.
(1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if thelessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload,or larger shipments of express or freight if the lessee repudiates or fails to make a payment duebefore delivery, whether for rent, security, or otherwise under the lease contract, or for any otherreason the lessor has a right to withhold or take possession of the goods.
(2) In pursuing its remedies under Subsection (1), the lessor may stop delivery until:
(a) receipt of the goods by the lessee;
(b) acknowledgment to the lessee by any bailee of the goods, except a carrier, that thebailee holds the goods for the lessee; or
(c) such an acknowledgment to the lessee by a carrier via reshipment or as a warehouse.
(3) (a) To stop delivery, a lessor shall so notify as to enable the bailee by reasonablediligence to prevent delivery of the goods.
(b) After notification, the bailee shall hold and deliver the goods according to thedirections of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
(c) 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