Tennessee § 47-7-503 - Document of title to goods defeated in certain cases.

§ 47-7-503. Document of title to goods defeated in certain cases.

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: Deliver or entrust the goods or any document of title covering the goods to the bailor or the bailor's nominee with: Actual or apparent authority to ship, store, or sell; Power to obtain delivery under § 47-7-403; or Power of disposition under § 47-2-403, § 47-2A-304(2), § 47-2A-305(2), § 47-9-320, or § 47-9-321(c) or other statute or rule of law; or Acquiesce in the procurement by the bailor or its nominee of any document. 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 § 47-7-504 to the same extent as the rights of the issuer or a transferee from the issuer. 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 chapter pursuant to its own bill of lading discharges the carrier's obligation to deliver. Acts 2008, ch. 814, § 1. Compiler's Notes. This revised chapter 7 replaces former chapter 7, effective July 1, 2008. Former chapter 7, §§ 47-7-101 — 47-7-106 , 47-7-201 — 47-7-210 , 47-7-301 — 47-7-309 , 47-7-401 — 47-7-404 , 47-7-501 — 47-7-509 , 47-7-601 — 47-7-603 (Acts 1963, ch. 81, § 1 (7-101 — 7-106(1), 7-201 — 7-210, 7-301 — 7-309, 7-401 — 7-404, 7-501 — 7-509, 7-601 — 7-603); 2000, ch. 846, § 15), concerning the Uniform Commercial Code, documents of title, regarding warehouse receipts, bills of lading and other documents of title, was repealed by Acts 2008, ch. 814, § 1, effective July 1, 2008, which enacted this revised chapter 7. Effective Dates. Acts 2008, ch. 814, § 40. July 1, 2008. Cross-References. Bill of lading, § 47-1-201 . Buyer of goods, § 47-9-320 . Contract for sale, § 47-2-106 . Delivery, § 47-1-201 . Delivery order, § 47-7-102 . Document of title, § 47-1-201 . Duplicate receipt or bill, overissue, § 47-7-402 . Effect of instructions, § 47-2-203 . Form of negotiation and requirements of due negotiation, § 47-7-501 . Goods, § 47-7-102 . Licensee of general intangible and lessee of goods in ordinary course of business, § 47-9-321 . Obligation of bailee to deliver, excuse, § 47-7-403 . Lien of warehouse, § 47-7-209 . No liability for good-faith delivery pursuant to document of title, § 47-7-404 . Person, § 47-1-201 . Priority of rights of purchasers, § 47-9-331 . Relation of chapter to treaty or statute, § 47-1-103 . Right, § 47-1-201 . Rights acquired in absence of due negotiation, effect of diversion, stoppage of delivery, § 47-7-504 . Sale or sublease of goods by lessee, § 47-2A-305 . Subsequent lease of goods by lessor, § 47-2A-304 . Title under warehouse receipt defeated in certain cases, § 47-7-205 . Warehouse receipt, § 47-1-201 .