                                 CODE OF VIRGINIA

SELLER&#8217;S STOPPAGE OF DELIVERY IN TRANSIT OR OTHERWISE (§ 8.2-705)

1. The seller may stop delivery of goods in the possession of a carrier or other
bailee when he discovers the buyer to be insolvent (&#xA7; 8.2-702) and may stop
delivery of carload, truckload, planeload or larger shipments of express or
freight when the buyer repudiates or fails to make a payment due before delivery
or if for any other reason the seller has a right to withhold or reclaim the
goods.

2. As against such buyer the seller may stop delivery until:

   a. receipt of the goods by the buyer; or

   b. acknowledgment to the buyer by any bailee of the goods except a carrier
   that the bailee holds the goods for the buyer; or

   c. such acknowledgment to the buyer by a carrier by reshipment or as a
   warehouse; or

   d. negotiation to the buyer of any negotiable document of title covering the
   goods.

3. (a) To stop delivery the seller must so notify as to enable the bailee by
reasonable diligence to prevent delivery of the goods.

   b. After such notification the bailee must hold and deliver the goods
   according to the directions of the seller but the seller is liable to the
   bailee for any ensuing charges or damages.

   c. If a negotiable document of title has been issued for goods the bailee is
   not obliged to obey a notification to stop until surrender of possession or
   control of the document.

   d. A carrier who has issued a nonnegotiable bill of lading is not obliged to
   obey a notification to stop received from a person other than the consignor.

HISTORY: 1964, c. 219; 2004, c. 200.