Document of title to goods defeated in certain cases

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  • (1) A document of title confers no right in goods against a person who before issuance of the document had a legal interest or a perfected security interest in them and who neither

    • (a) delivered or entrusted them or any document of title covering them to the bailor or his nominee with actual or apparent authority to ship, store or sell or with power to obtain delivery under this Article (§ 7–403) or with power of disposition under this Act (Sections 2–403 and 9–320) or other statute or rule of law; nor

    • (b) acquiesced in the procurement by the bailor or his nominee of any document of title.


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