US Laws, Codes, Statutes & Cases

§ 1307.35. (UCC 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 section 1307.36 of the Revised Code, 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. 
 

HISTORY: 129 v S 5. Eff 7-1-62.
 

Analogous to former RC §§ 1315.37, 1323.44, 4965.31.

 

Official Comment

1. This section omits provisions of the prior acts on warranties as to the goods as unnecessary and incomplete. It is unnecessary because such warranties derive from the contract of sale and not from the transfer of the documents. The fact that transfer of control occurs by way of a document of title does not limit or displace the ordinary obligations of a seller. The former provision, moreover, was incomplete because it did not expressly include all of the warranties which might rest upon a seller under such circumstances. This Act handles the problem by means of the precautionary reference to "any warranty made in selling the goods." If the transfer of documents attends or follows the making of a contract for the sale of goods, the general obligations on warranties as to the goods (Sections 2-312 - 2-318) are brought to bear as well as the special warranties under this section. 

2. The limited warranties of a delivering or collecting intermediary are stated in Section 7-508. 

Point 1: Sections 2-312 - 2-318. 

Point 2: Section 7-508.