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.
(Code 1933, § 109A-7 - 205, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2010, p. 481, § 1-1/HB 451.)
The 2010 amendment, effective May 27, 2010, deleted "the" preceding "ordinary" near the beginning, substituted "warehouse that" for "warehouseman who", inserted "the goods", and substituted "if the receipt is negotiable and" for "though it" near the end. See the Editor's notes for applicability.
Editor's notes.- Ga. L. 2010, p. 481, § 3-1, not codified by the General Assembly, provides that: "This Act applies to a document of title that is issued or a bailment that arises on or after the effective date of this Act. This Act does not apply to a document of title that is issued or a bailment that arises before the effective date of this Act even if the document of title or bailment would be subject to this Act if the document of title had been issued or bailment had arisen on or after the effective date of this Act. This Act does not apply to a right of action that has accrued before the effective date of this Act." This Act became effective May 27, 2010.
Ga. L. 2010, p. 481, § 3-2, not codified by the General Assembly, provides that: "A document of title issued or a bailment that arises before the effective date of this Act and the rights, documents, and interests flowing from that document or bailment are governed by any statute or other rule amended or repealed by this Act as if such amendment or repeal had not occurred and may be terminated, completed, consummated, or enforced under that statute or other rule." This Act became effective May 27, 2010.
JUDICIAL DECISIONS
Obtaining of negotiable warehouse receipt by due negotiation.
- One obtaining negotiable warehouse receipt by due negotiation obtains substantial rights enumerated in O.C.G.A. § 11-7-205. Citizens Bank & Trust Co. v. SLT Whse. Co., 368 F. Supp. 1042 (M.D. Ga. 1974), aff'd, 515 F.2d 1382 (5th Cir. 1975).
Cited in Turfgrass Group v. Ga. Cold Storage Co., 346 Ga. App. 659, 816 S.E.2d 716 (2018).
RESEARCH REFERENCES
C.J.S.
- 15A C.J.S., Confusion of Goods, § 1 et seq. 93 C.J.S., Warehousemen and Safe Depositaries, §§ 14, 15, 62.
U.L.A.- Uniform Commercial Code (U.L.A.) § 7-205.