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California Commercial Code Section 2705

Legal Research Home > California Laws > Commercial Code > California Commercial Code Section 2705

2705.  (1) The seller may stop delivery of goods in the possession
of a carrier or other bailee when he discovers the buyer to be
insolvent (Section 2702) and may stop delivery of carload, truckload,
planeload or larger shipments of express or freight when the buyer
repudiates or fails to make a payment due before delivery or if for
any other reason the seller 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; or
   (b) Acknowledgment to the buyer by any bailee of the goods except
a carrier that the bailee holds the goods for the buyer; or
   (c) Such acknowledgment to the buyer by a carrier by reshipment or
as a 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 reasonable diligence to prevent delivery of the goods.
   (b) After such notification the bailee must hold and deliver the
goods according to the directions 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 to obey 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 a notification to stop received from a person other
than the consignor.

Last modified: February 22, 2013