2005 California Commercial Code Sections 7301-7309 CHAPTER 3. BILLS OF LADING: SPECIAL PROVISIONS

7301.  (1) A consignee of a nonnegotiable bill who has given value
in good faith or a holder to whom a negotiable bill has been duly
negotiated relying in either case upon the description therein of the
goods, or upon the date therein shown, may recover from the issuer
damages caused by the misdating of the bill or the nonreceipt or
misdescription of the goods, except to the extent that the document
indicates that the issuer does not know whether any part or all of
the goods in fact were received or conform to the description, as
where the description is in terms of marks or labels or kind,
quantity, or condition or the receipt or description is qualified by
"contents or condition of contents of packages unknown," "said to
contain," "shipper's weight, load and count" or the like, if such
indication be true.
   (2) When goods are loaded by an issuer who is a common carrier,
the issuer must count the packages of goods if package freight and
ascertain the kind and quantity if bulk freight.  In such cases
"shipper's weight, load and count" or other words indicating that the
description was made by the shipper are ineffective except as to
freight concealed by packages.
   (3) When bulk freight is loaded by a shipper who makes available
to the issuer adequate facilities for weighing such freight, an
issuer who is a common carrier must ascertain the kind and quantity
within a reasonable time after receiving the written request of the
shipper to do so.  In such cases "shipper's weight" or other words of
like purport are ineffective.
   (4) The issuer may by inserting in the bill the words "shipper's
weight, load and count" or other words of like purport indicate that
the goods were loaded by the shipper; and if such statement be true
the issuer shall not be liable for damages caused by the improper
loading.  But their omission does not imply liability for such
damages.
   (5) The shipper shall be deemed to have guaranteed to the issuer
the accuracy at the time of shipment of the description, marks,
labels, number, kind, quantity, condition and weight, as furnished by
him; and the shipper shall indemnify the issuer against damage
caused by inaccuracies in such particulars.  The right of the issuer
to such indemnify shall in no way limit his responsibility and
liability under the contract of carriage to any person other than the
shipper.
7302.  (1) The issuer of a through bill of lading or other document
embodying an undertaking to be performed in part by persons acting as
its agents or by connecting carriers is liable to anyone entitled to
recover on the document for any breach by such other persons or by a
connecting carrier of its obligation under the document but to the
extent that the bill covers an undertaking to be performed overseas
or in territory not contiguous to the continental United States or an
undertaking including matters other than transportation this
liability may be varied by agreement of the parties.
   (2) Where goods covered by a through bill of lading or other
document embodying an undertaking to be performed in part by persons
other than the issuer are received by any such person, he is subject
with respect to his own performance while the goods are in his
possession to the obligation of the issuer.  His obligation is
discharged by delivery of the goods to another such person pursuant
to the document, and does not include liability for breach by any
other such persons or by the issuer.
   (3) The issuer of such through bill of lading or other document
shall be entitled to recover from the connecting carrier or such
other person in possession of the goods when the breach of the
obligaton under the document occurred, the amount it may be required
to pay to anyone entitled to recover on the document therefor, as may
be evidenced by any receipt, judgment, or transcript thereof, and
the amount of any expense reasonably incurred by it in defending any
action brought by anyone entitled to recover on the document
therefor.
7303.  (1) Unless the bill of lading otherwise provides, the carrier
may deliver the goods to a person or destination other than that
stated in the bill or may otherwise dispose of the goods on
instructions from
   (a) The holder of a negotiable bill; or
   (b) The consignor on a nonnegotiable bill notwithstanding contrary
instructions from the consignee; or
   (c) The consignee on a nonnegotiable bill in the absence of
contrary instructions from the consignor, if the goods have arrived
at the billed destination or if the consignee is in possession of the
bill; or
   (d) The consignee on a nonnegotiable bill if he is entitled as
against the consignor to dispose of them.
   (2) Unless such instructions are noted on a negotiable bill of
lading, a person to whom the bill is duly negotiated can hold the
bailee according to the original terms.
7304.  (1) Except where customary in overseas transportation, a bill
of lading must not be issued in a set of parts.  The issuer is
liable for damages caused by violation of this subdivision.
   (2) Where a bill of lading is lawfully drawn in a set of parts,
each of which is numbered and expressed to be valid only if the goods
have not been delivered against any other part, the whole of the
parts constitute one bill.
   (3) Where a bill of lading is lawfully issued in a set of parts
and different parts are negotiated to different persons, the title of
the holder to whom the first due negotiation is made prevails as to
both the document and the goods even though any later holder may have
received the goods from the carrier in good faith and discharged the
carrier's obligation by surrender of his part.
   (4) Any person who negotiates or transfers a single part of a bill
of lading drawn in a set is liable to holders of that part as if it
were the whole set.
   (5) The bailee is obliged to deliver in accordance with Chapter 4
of this division against the first presented part of a bill of lading
lawfully drawn in a set.  Such delivery discharges the bailee's
obligation on the whole bill.
7305.  (1) Instead of issuing a bill of lading to the consignor at
the place of shipment a carrier may at the request of the consignor
procure the bill to be issued at destination or at any other place
designated in the request.
   (2) Upon request of anyone entitled as against the carrier to
control the goods while in transit and on surrender of any
outstanding bill of lading or other receipt covering such goods, the
issuer may procure a substitute bill to be issued at any place
designated in the request.
7306.  An unauthorized alteration or filling in of a blank in a bill
of lading leaves the bill enforceable according to its original
tenor.
7307.  (1) A carrier has a lien on the goods covered by a bill of
lading for charges subsequent to the date of its receipt of the goods
for storage or transportation (including demurrage and terminal
charges) and for expenses necessary for preservation of the goods
incident to their transportation or reasonably incurred in their sale
pursuant to law.  But against a purchaser for value of a negotiable
bill of lading a carrier's lien is limited to charges stated in the
bill or the applicable tariffs, or if no charges are stated then to a
reasonable charge.
   (2) A lien for charges and expenses under subdivision (1) on goods
which the carrier was required by law to receive for transportation
is effective against the consignor or any person entitled to the
goods unless the carrier had notice that the consignor lacked
authority to subject the goods to such charges and expenses.  Any
other lien under subdivision (1) is effective against the consignor
and any person who permitted the bailor to have control or possession
of the goods unless the carrier had notice that the bailor lacked
such authority.
   (3) A carrier loses his lien on any goods which he voluntarily
delivers or which he unjustifiably refuses to deliver.
7308.  (1) A carrier's lien may be enforced by public or private
sale of the goods, in bloc or in parcels, at any time or place and on
any terms which are commercially reasonable, after notifying all
persons known to claim an interest in the goods.  Such notification
must include a statement of the amount due, the nature of the
proposed sale and the time and place of any public sale.  The fact
that a better price could have been obtained by a sale at a different
time or in a different method from that selected by the carrier is
not of itself sufficient to establish that the sale was not made in a
commercially reasonable manner.  If the carrier either sells the
goods in the usual manner in any recognized market therefor or if he
sells at the price current in such market at the time of his sale or
if he has otherwise sold in conformity with commercially reasonable
practices among dealers in the type of goods sold he has sold in a
commercially reasonable manner.  A sale of more goods than apparently
necessary to be offered to ensure satisfaction of the obligation is
not commercially reasonable except in cases covered by the preceding
sentence.
   (2) Before any sale pursuant to this section any person claiming a
right in the goods may pay the amount necessary to satisfy the lien
and the reasonable expenses incurred under this section.  In that
event the goods must not be sold, but must be retained by the carrier
subject to the terms of the bill and this division.
   (3) The carrier may buy at any public sale pursuant to this
section.
   (4) A purchaser in good faith of goods sold to enforce a carrier's
lien takes the goods free of any rights of persons against whom the
lien was valid, despite noncompliance by the carrier with the
requirements of this section.
   (5) The carrier may satisfy his lien from the proceeds of any sale
pursuant to this section but must hold the balance, if any, for
delivery on demand to any person to whom he would have been bound to
deliver the goods.
   (6) The rights provided by this section shall be in addition to
all other rights allowed by law to a creditor against his debtor.
   (7) A carrier's lien may be enforced in accordance with either
subdivision (1) or the procedure set forth in subdivision (2) of
Section 7210.
   (8) The carrier is liable for damages caused by failure to comply
with the requirements for sale under this section and in case of
willful violation is liable for conversion.
7309.  (1) A carrier who issues a bill of lading whether negotiable
or nonnegotiable must exercise the degree of care in relation to the
goods which a reasonably careful man would exercise under like
circumstances.  This subdivision does not repeal or change any law or
rule of law which imposes liability upon a common carrier for
damages not caused by its negligence.
   (2) Damages may be limited by a provision that the carrier's
liability shall not exceed a value stated in the document if the
carrier's rates are dependent upon value and the consignor by the
carrier's tariff is afforded an opportunity to declare a higher value
or a value as lawfully provided in the tariff, or where no tariff is
filed he is otherwise advised of such opportunity; but no such
limitation is effective with respect to the carrier's liability for
conversion to its own use.
   (3) Reasonable provisions as to the time and manner of presenting
claims and instituting actions based on the shipment may be included
in a bill of lading or tariff.