Iowa § 554.2705 Seller’s stoppage of delivery in transit or otherwise

Iowa Statutes

§ 554.2705 — Seller’s stoppage of delivery in transit or otherwise

Iowa § 554.2705

Title XIIICOMMERCE

Ch. 554UNIFORM COMMERCIAL CODE

This text of Iowa § 554.2705 (Seller’s stoppage of delivery in transit or otherwise) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 554.2705 (2026).

Text

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 554.2702) 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 th

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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 554.2702) 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
directionsofthesellerbutthesellerisliabletothebaileeforanyensuingchargesordamages.
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.

Legislative History

[S13, §3138-a9, -a11, -a49, -b11, -b13, -b41; C24, 27, 31, 35, 39, §8256, 8258, 8286, 9669, 9671, 9709, 9986 – 9988; C46, 50, 54, 58, 62, §487.12, 487.14, 487.42, 542.9, 542.11, 542.49, 554.58 – 554.60; C66, 71, 73, 75, 77, 79, 81, §554.2705]