fact caused the loss. Subsection (d) permits the carrier to bar, by disclosure of loading, liability to a good faith purchaser. shipper’s There is no implication that decisions such as Modern Tool Corp. v. Pennsylvania R. Co., 100 F.Supp. 595 (D.N.J.1951), are disapproved. 3. This section is a restatement of existing law as to the method by which a bailee may avoid responsibility for the accuracy of descriptions which are made by or in reliance upon information furnished by the depositor or shipper. The wording in this section or condition of contents of packages or – ‘contents unknown’ weight, load and to indicate that the shipper ‘shipper’s count’ – loaded the goods or that the carrier does not know the description, condition, or contents of the loaded packages continues to be appropriate as commonly understood in the transportation industry. The reasons for this wording are as important in 2002 as when the prior section initially was approved. The issuer is liable on documents issued by an agent, contrary to instructions of his principal, without receiving goods. No disclaimer of this liability is permitted since it is not a matter either of the care of the goods or their description. 4. The erroneous report to the carrier concerning the shipper’s goods may cause damage to the carrier. Subsection (e) therefore provides appropriate indemnity. 5. The word in the former Section 7301 has been changed ‘freight’ to to conform to international and domestic land transport ‘goods’ usage in which means the price paid for carriage of the ‘freight’ goods and not the goods themselves. Hence, changing the word to the word is a clarifying change that fits both ‘freight’ ‘goods’ international and domestic practice. Cross References: Sections 7203, 7309 and 7501. Definitional Cross References: of Section 1201. ‘Bill lading’. Section 7102. ‘Consignee’. of Section 1201. ‘Document Title’. Section 7501. ‘Duly negotiate’. Section 1201. [7102]. ‘Good faith’. Section 7102. ‘Goods’. Section 1201. ‘Holder’.
fact caused the loss. Subsection (d) permits the carrier to bar, by disclosure of shipper’s loading, liability to a good faith purchaser. There is no implication that decisions such as Modern Tool Corp. v. Pennsylvania R. Co., 100 F.Supp. 595 (D.N.J.1951), are disapproved. 3. This section is a restatement of existing law as to the method by which a bailee may avoid responsibility for the accuracy of descriptions which are made by or in reliance upon information furnished by the depositor or shipper. The wording in this section – ‘contents or condition of contents of packages unknown’ or ‘shipper’s weight, load and count’ – to indicate that the shipper loaded the goods or that the carrier does not know the description, condition, or contents of the loaded packages continues to be appropriate as commonly understood in the transportation industry. The reasons for this wording are as important in 2002 as when the prior section initially was approved. The issuer is liable on documents issued by an agent, contrary to instructions of his principal, without receiving goods. No disclaimer of this liability is permitted since it is not a matter either of the care of the goods or their description. 4. The shipper’s erroneous report to the carrier concerning the goods may cause damage to the carrier. Subsection (e) therefore provides appropriate indemnity. 5. The word ‘freight’ in the former Section 7301 has been changed to ‘goods’ to conform to international and domestic land transport usage in which ‘freight’ means the price paid for carriage of the goods and not the goods themselves. Hence, changing the word ‘freight’ to the word ‘goods’ is a clarifying change that fits both international and domestic practice. Cross References: Sections 7203, 7309 and 7501. Definitional Cross References: ‘Bill of lading’. Section 1201. ‘Consignee’. Section 7102. ‘Document of Title’. Section 1201. ‘Duly negotiate’. Section 7501. ‘Good faith’. Section 1201. [7102]. ‘Goods’. Section 7102. ‘Holder’. Section 1201.
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