A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes the goods free of any claim under a warehouse receipt even if the receipt is negotiable and has been duly negotiated.
Structure Code of Alabama
Article 7 - Warehouse Receipts, Bills of Lading and Other Documents of Title.
Part 2 - Warehouse Receipts: Special Provisions.
Section 7-7-201 - Person That May Issue a Warehouse Receipt; Storage Under Bond.
Section 7-7-202 - Form of Warehouse Receipt; Effect of Omission.
Section 7-7-203 - Liability for Nonreceipt or Misdescription.
Section 7-7-204 - Duty of Care; Contractual Limitation of Warehouse's Liability.
Section 7-7-205 - Title Under Warehouse Receipt Defeated in Certain Cases.
Section 7-7-206 - Termination of Storage at Warehouse's Option.
Section 7-7-207 - Goods Must Be Kept Separate; Fungible Goods.
Section 7-7-208 - Altered Warehouse Receipts.