Uniform Commercial Code

U.C.C. - ARTICLE 7 - WAREHOUSE RECEIPTS, BILLS OF LADING AND OTHER DOCUMENTS OF TITLE
..PART 5. WAREHOUSE RECEIPTS AND BILLS OF LADING: NEGOTIATION AND TRANSFER

§ 7-507. Warranties on Negotiation or Transfer of Receipt or Bill.

Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under the next following section, then unless otherwise agreed he warrants to his immediate purchaser only in addition to any warranty made in selling the goods

• (a) that the document is genuine; and
• (b) that he has no knowledge of any fact which would impair its validity or worth; and
• (c) that his negotiation or transfer is rightful and fully effective with respect to the title to the document and the goods it represents.