                                 CODE OF VIRGINIA

DOCUMENT TO GOODS DEFEATED IN CERTAIN CASES (§ 8.7-503)

1. A document 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 covering them to the bailor or
   his nominee with (i) actual or apparent authority to ship, store or sell, (ii)
   power to obtain delivery under &#xA7; 8.7-403, or (iii) power of disposition
   under &#xA7;&#xA7; 8.2-403, 8.2A-304(2), 8.2A-305(2), 8.9A-320, or &#xA7;
   8.9A-321(c) or other statute or rule of law; nor

   b. acquiesced in the procurement by the bailor or his nominee of any document.

2. Title to goods based upon an unaccepted delivery order is subject to the
rights of anyone to whom a negotiable warehouse receipt or bill of lading
covering the goods has been duly negotiated. Such a title may be defeated under
&#xA7; 8.7-504 to the same extent as the rights of the issuer or a transferee
from the issuer.

3. Title to goods based upon a bill of lading issued to a freight forwarder is
subject to the rights of anyone to whom a bill issued by the freight forwarder
is duly negotiated. However, delivery by the carrier in accordance with Part 4
of this title pursuant to its own bill of lading discharges the carrier&#8217;s
obligation to deliver.

HISTORY: Code 1950, § 61-44; 1964, c. 219; 2000, c. 1007; 2004, c. 200.