Arkansas Code § 4-7-507 - Warranties on Negotiation or Delivery of Document of Title

If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under ยง 4-7-508, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that:

(1) the document is genuine;

(2) the transferor does not have knowledge of any fact that would impair the document's validity or worth; and

(3) the negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.

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Last modified: November 15, 2016