Colorado Code
Part 7 - Remedies
§ 4-2-705. Seller's Stoppage of Delivery in Transit or Otherwise

Source: L. 65: p. 1336, § 1. C.R.S. 1963: § 155-2-705. L. 2006: (2)(c) and (3)(c) amended, p. 493, § 15, effective September 1.
Prior Uniform Statutory Provision: Sections 57-59, Uniform Sales Act; see also Sections 12, 14, and 42, Uniform Bills of Lading Act and Sections 9, 11, and 49, Uniform Warehouse Receipts Act.
Changes: This section continues and develops the above sections of the Uniform Sales Act in the light of the other uniform statutory provisions noted.
Purposes: To make it clear that:

It also expands the remedy to cover the situations, in addition to buyer's insolvency, specified in the subsection. But since stoppage is a burden in any case to carriers, and might be a very heavy burden to them if it covered all small shipments in all these situations, the right to stop for reasons other than insolvency is limited to carload, truckload, planeload or larger shipments. The seller shipping to a buyer of doubtful credit can protect himself by shipping C.O.D.
Where stoppage occurs for insecurity it is merely a suspension of performance, and if assurances are duly forthcoming from the buyer the seller is not entitled to resell or divert.
Improper stoppage is a breach by the seller if it effectively interferes with the buyer's right to due tender under the section on manner of tender of delivery. However, if the bailee obeys an unjustified order to stop he may also be liable to the buyer. The measure of his obligation is dependent on the provisions of the Documents of Title Article (Section 7-303). Subsection 3(b) therefore gives him a right of indemnity as against the seller in such a case.
As between the buyer and the seller, the latter's right to stop the goods at any time until they reach the place of final delivery is recognized by this section.
Under subsection (3)(c) and (d), the carrier is under no duty to recognize the stop order of a person who is a stranger to the carrier's contract. But the seller's right as against the buyer to stop delivery remains, whether or not the carrier is obligated to recognize the stop order. If the carrier does obey it, the buyer cannot complain merely because of that circumstance; and the seller becomes obligated under subsection (3)(b) to pay the carrier any ensuing damages or charges.
Acknowledgment by the carrier as a "warehouseman" within the meaning of this Article requires a contract of a truly different character from the original shipment, a contract not in extension of transit but as a warehouseman.
Cross References:
Sections 4-2-702 and 4-2-703.
Point 1: Sections 4-2-503 and 4-2-609, and Article 7.
Point 2: Section 4-2-103 and Article 7.
Definitional Cross References:
"Buyer". Section 4-2-103.
"Contract for sale". Section 4-2-106.
"Document of title". Section 4-1-201.
"Goods". Section 4-2-105.
"Insolvent". Section 4-1-201.
"Notification". Section 4-1-201.
"Receipt" of goods. Section 4-2-103.
"Rights". Section 4-1-201.
"Seller". Section 4-2-103.