Ohio Revised Code
Chapter 1307 | Documents of Title
Section 1307.502 | Rights Acquired by Due Negotiation - Ucc 7-502.

Effective: June 29, 2011
Latest Legislation: House Bill 9 - 129th General Assembly
Rights acquired by due negotiation [UCC 7-502]
(A) Subject to sections 1307.205 and 1307.503 of the Revised Code, a holder to which a negotiable document of title has been duly negotiated acquires thereby:
(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; and
(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 sections 1307.101 to 1307.603 of the Revised Code, but 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) Subject to section 1307.503 of the Revised Code, 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.

Structure Ohio Revised Code

Ohio Revised Code

Title 13 | Commercial Transactions

Chapter 1307 | Documents of Title

Section 1307.101 | Short Title - Ucc 7-101.

Section 1307.102 | Definitions and Index of Definitions - Ucc 7-102.

Section 1307.103 | Relation of Chapter 1307. of the Revised Code to Treaty or Statute - Ucc 7-103.

Section 1307.104 | Negotiable and Nonnegotiable Document of Title - Ucc 7-104.

Section 1307.105 | Reissuance in Alternative Medium - Ucc 7-105.

Section 1307.106 | Control of Electronic Document of Title - Ucc 7-106.

Section 1307.201 | Person That May Issue a Warehouse Receipt; Storage Under Bond - Ucc 7-201.

Section 1307.202 | Form of Warehouse Receipt; Effect of Omission - Ucc 7-202.

Section 1307.203 | Liability for Nonreceipt or Misdescription - Ucc 7-203.

Section 1307.204 | Duty of Care; Contractual Limitation of Warehouse's Liability - Ucc 7-204.

Section 1307.205 | Title Under Warehouse Receipt Defeated in Certain Cases - Ucc 7-205.

Section 1307.206 | Termination of Storage at Warehouse's Option - Ucc 7-206.

Section 1307.207 | Goods Must Be Kept Separate; Fungible Goods - Ucc 7-207.

Section 1307.208 | Altered Warehouse Receipts - Ucc 7-208.

Section 1307.209 | Lien of Warehouse - Ucc 7-209.

Section 1307.210 | Enforcement of Warehouse's Lien - Ucc 7-210.

Section 1307.301 | Liability for Nonreceipt or Misdescription; "Said to Contain"; "Shipper's Weight, Load, and Count"; Improper Handling - Ucc 7-301.

Section 1307.302 | Through Bills of Lading and Similar Documents of Title - Ucc 7-302.

Section 1307.303 | Diversion; Reconsignment; Change of Instructions - Ucc 7-303.

Section 1307.304 | Tangible Bills of Lading in a Set - Ucc 7-304.

Section 1307.305 | Destination Bills - Ucc 7-305.

Section 1307.306 | Altered Bills of Lading - Ucc 7-306.

Section 1307.307 | Lien of Carrier -Ucc 7-307.

Section 1307.308 | Enforcement of Carrier's Lien -Ucc 7-308.

Section 1307.309 | Duty of Care; Contractual Limitation of Carrier's Liability -Ucc 7-309.

Section 1307.401 | Irregularities in Issue of Receipt or Bill or Conduct of Issuer -Ucc 7-401.

Section 1307.402 | Duplicate Document of Title; Overissue - Ucc 7-402.

Section 1307.403 | Obligation of Bailee to Deliver; Excuse - Ucc 7-403.

Section 1307.404 | No Liability for Good-Faith Delivery Pursuant to Document of Title - Ucc 7-404.

Section 1307.501 | Form of Negotiation and Requirements of Due Negotiation - Ucc 7-501.

Section 1307.502 | Rights Acquired by Due Negotiation - Ucc 7-502.

Section 1307.503 | Document of Title to Goods Defeated in Certain Cases - Ucc 7-503.

Section 1307.504 | Rights Acquired in Absence of Due Negotiation; Effect of Diversion; Stoppage of Delivery - Ucc 7-504.

Section 1307.505 | Indorser Not Guarantor for Other Parties - Ucc 7-505.

Section 1307.506 | Delivery Without Indorsement: Right to Compel Indorsement - Ucc 7-506.

Section 1307.507 | Warranties on Negotiation or Delivery of Document of Title - Ucc 7-507.

Section 1307.508 | Warranties of Collecting Bank as to Documents of Title - Ucc 7-508.

Section 1307.509 | Adequate Compliance With Commercial Contract - Ucc 7-509.

Section 1307.601 | Lost, Stolen, or Destroyed Documents of Title - Ucc 7-601.

Section 1307.602 | Judicial Process Against Goods Covered by Negotiable Document of Title - Ucc 7-602.

Section 1307.603 | Conflicting Claims; Interpleader - Ucc 7-603.

Section 1307.703 | Applicability - Ucc 7-703.

Section 1307.704 | Savings Clause - Ucc 7-704.