Section 7-503 - Document of title to goods defeated in certain cases(a) A document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the goods and that did not: (1) deliver or entrust the goods or any document of title covering the goods to the bailor or the bailor's nominee with:(A) actual or apparent authority to ship, store or sell;(B) power to obtain delivery under Section 7-403 of this title; or(C) power of disposition under Section 2-403, 2A-304(2), 2A-305(2), 1-9-320, or 1-9-321(c) of this title or other statute or rule of law; or(2) acquiesce in the procurement by the bailor or its nominee of any document.(b) Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. That title may be defeated under Section 7-504 of this title to the same extent as the rights of the issuer or a transferee from the issuer.(c) Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of any person to which a bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with Part 4 of this article pursuant to its own bill of lading discharges the carrier's obligation to deliver.Okla. Stat. tit. 12A, § 7-503
Laws 1961, SB 36, p. 149, § 7-503; Amended by Laws 2000 , SB 1519, c. 371, § 159, eff. 7/1/2001; Amended by Laws 2005 , HB 2035, c. 140, § 30, eff. 1/1/2006.Oklahoma Code Comment
Prior Statutory Provisions:
2 O.S. § 9-100.
13 O.S. § 92.
Text and derivation of prior provisions, see Appendix at end of this title.
Comment:
(1) This section preserves the rights of the owner of goods which have been stolen and placed in the hands of a bailee, or the rights of a security holder. This is a rewording of former 2 O.S. § 9-100(a), and is consistent with former 13 O.S. § 92.
(2) There is no previous comparable Oklahoma law. An unaccepted delivery order is not obligatory upon the bailee, and therefore one claiming under a negotiable document issued by the bailee prevails. An accepted delivery order has the same effect as a document issued by the bailee. In such a case the conflicting rights would be determined by Section 7-402 on overissue.
The title claimed by an unaccepted delivery order may also be defeated to the same extent as the rights of the issuer or a transferee from the issuer under Section 7-504 .
(3) There is no comparable previous Oklahoma law. A freight forwarder issues his own bills of lading to his customers, and the carrier issues its bill to the forwarder. This section provides that the holder of the bill issued by the forwarder prevails over the holder of the bill issued by the carrier since the bill on its face gives notice that a freight forwarder is involved. However, delivery by the carrier pursuant to its own bill discharges the carrier's liability.