2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 75 - Warehouse Receipts and Bills of Lading: Negotiation and Transfer
Section 7502 - Rights acquired by due negotiation

     § 7502.  Rights acquired by due negotiation.
        (a)  Rights.--Subject to sections 7205 (relating to title
     under warehouse receipt defeated in certain cases) and 7503
     (relating to document of title to goods defeated in certain
     cases), a holder to which a negotiable document of title has
     been duly negotiated acquires thereby all of the following:
            (1)  Title to the document.
            (2)  Title to the goods.
            (3)  All rights accruing under the law of agency or
        estoppel, including rights to goods delivered to the bailee
        after the document was issued.
            (4)  The direct obligation of the issuer to hold or
        deliver the goods according to the terms of the document free
        of any defense or claim by the issuer except those arising
        under the terms of the document or under this division. In
        the case of a delivery order, the bailee's obligation accrues
        only upon the bailee's acceptance of the delivery order, and
        the obligation acquired by the holder is that the issuer and
        any indorser will procure the acceptance of the bailee.
        (b)  Effect of stoppage or surrender.--Subject to section
     7503, title and rights acquired by due negotiation are not
     defeated by any stoppage of the goods represented by the
     document of title or by surrender of the goods by the bailee and
     are not impaired even if:
            (1)  the due negotiation or any prior due negotiation
        constituted a breach of duty;
            (2)  any person has been deprived of possession of a
        negotiable tangible document or control of a negotiable
        electronic document by misrepresentation, fraud, accident,
        mistake, duress, loss, theft or conversion; or
            (3)  a previous sale or other transfer of the goods or
        document has been made to a third person.