(a) A transferee of a document of title, whether negotiable or nonnegotiable, to whom the document has been delivered but not duly negotiated, acquires the title and rights that the transferor had or had actual authority to convey.
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Terms Used In Alaska Statutes 45.07.504

  • bailee: means a person who, by a warehouse receipt, bill of lading, or other document of title, acknowledges possession of goods and contracts to deliver them. See Alaska Statutes 45.07.112
  • consignee: means a person named in a bill of lading to whom or to whose order the bill promises delivery. See Alaska Statutes 45.07.112
  • consignor: means a person named in a bill of lading as the person from whom the goods have been received for shipment. See Alaska Statutes 45.07.112
  • goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See Alaska Statutes 45.07.112
(b) In the case of a transfer of a nonnegotiable document of title, until, but not after, the bailee receives notice of the transfer, the rights of the transferee may be defeated

(1) by those creditors of the transferor who could treat the transfer as void under Alaska Stat. § 45.02.402 or Alaska Stat. § 45.12.308;
(2) by a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of the buyer’s rights;
(3) by a lessee from the transferor in ordinary course of business if the bailee has delivered the goods to the lessee or received notification of the lessee’s rights; or
(4) as against the bailee, by good faith dealings of the bailee with the transferor.
(c) A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading that causes the bailee not to deliver the goods to the consignee defeats the consignee’s title to the goods if the goods have been delivered to a buyer in ordinary course of business or a lessee in ordinary course of business and, in any event, defeats the consignee’s rights against the bailee.
(d) Delivery of the goods under a nonnegotiable document of title may be stopped by a seller under Alaska Stat. § 45.02.705 or a lessor under Alaska Stat. § 45.12.526, subject to the requirement of due notification in those sections. A bailee who honors the seller’s or lessor’s instructions is entitled to be indemnified by the seller or lessor against a resulting loss or expense.
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