§ 26-1-2-705 — Seller's stoppage of delivery in transit or otherwise

(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 (IC 26-1-2-702) 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.
Formerly: Acts 1963, c.317, s.2-705. As amended by
P.L.152-1986, SEC.164; P.L.143-2007, SEC.18.