If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under § 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.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
Chapter 7 - Documents of Title
Part 5 - Warehouse Receipts and Bills of Lading: Negotiation and Transfer
§ 4-7-501. Form of negotiation and requirements of due negotiation
§ 4-7-502. Rights acquired by due negotiation
§ 4-7-503. Document of title to goods defeated in certain cases
§ 4-7-505. Indorser not guarantor for other parties
§ 4-7-506. Delivery without indorsement — Right to compel indorsement
§ 4-7-507. Warranties on negotiation or delivery of document of title
§ 4-7-508. Warranties of collecting bank as to documents of title