N.D. Cent. Code § 41-02-84
(2-705) Seller's stoppage of delivery in transit or otherwise
Redline — December 1, 2021 → current.View current text →
Current — January 1, 2022
As of December 1, 2021
(1) The seller may stop delivery of goods in the possession of a carrier or other bailee when the seller discovers the buyer to be insolvent (section 41-02-81) 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.
(1) The seller may stop delivery of goods in the possession of a carrier or other bailee when the seller discovers the buyer to be insolvent (section 41-02-81) 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: Receipt of the goods by the buyer;
(2) As against such buyer, the seller may stop delivery until: Receipt of the goods by the buyer;
(3) Acknowledgment to the buyer by any bailee of the goods except a carrier that the bailee holds the goods for the buyer;
(3) Acknowledgment to the buyer by any bailee of the goods except a carrier that the bailee holds the goods for the buyer;
(4) Such acknowledgment to the buyer by a carrier by reshipment or as a warehouse; or
(4) Such acknowledgment to the buyer by a carrier by reshipment or as a warehouse; or
(5) Negotiation to the buyer of any negotiable document of title covering the goods.
(5) Negotiation to the buyer of any negotiable document of title covering the goods.
(6) To stop delivery, the seller must so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
(6) To stop delivery, the seller must so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
(7) 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.
(7) 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.
(8) 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.
(8) 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.
(9) A carrier who has issued a non-negotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.
(9) A carrier who has issued a non-negotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.
(10) Subsection (3)(c) makes the bailee’s obedience of a notification to stop conditional upon the surrender of any outstanding negotiable document.
(11) The seller is responsible for any charges or losses incurred by the carrier in following the seller’s orders, whether or not the carrier was obligated to do so.
(12) After an effective stoppage under this section the seller’s rights in the goods are the same as if the seller had never made a delivery.
Official source: North Dakota Legislative Branch. Reproduced from public-domain North Dakota statutes; confirm against the official source for the current text. Not legal advice.