Colorado Code
Part 4 - Warehouse Receipts and Bills of Lading - General Obligations
§ 4-7-404. No Liability for Good-Faith Delivery Pursuant to Document of Title

A bailee that in good faith has received goods and delivered or otherwise disposed of the goods according to the terms of a document of title or pursuant to this article is not liable for the goods even if:


Source: L. 2006: Entire article R&RE, p. 484, § 2, effective September 1.
Editor's note: This section is similar to former § 4-7-404 as it existed prior to 2006.
Prior Uniform Statutory Provision: Former Section 7-404.
Changes: Changes reflect the definition of good faith in Section 1-201 [7-102] and for style.
Purposes:
This section uses the test of good faith, as defined in Section 1-201 [7-102], to continue the policy of former Section 7-404. Good faith now means "honesty in fact and the observance of reasonable commercial standards of fair dealing." The section states explicitly that the common law rule of "innocent conversion" by unauthorized "intermeddling" with another's property is inapplicable to the operations of commercial carriers and warehousemen that in good faith perform obligations that they have assumed and that generally they are under a legal compulsion to assume. The section applies to delivery to a fraudulent holder of a valid document as well as to delivery to the holder of an invalid document. Of course, in appropriate circumstances, a bailee may use interpleader or other dispute resolution process. See Section 7-603.
Cross Reference: Section 7-603.
Definitional Cross References:
"Bailee". Section 7-102.
"Delivery". Section 1-201.
"Document of title". Section 1-201.
"Good faith". Section 1-201 [7-102].
"Goods". Section 7-102.
"Person". Section 1-201.
"Receipt of goods". Section 2-103.
"Term". Section 1-201.

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