§ 41-02-84 — (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 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:
a. Receipt of the goods by the buyer;
b. Acknowledgment to the buyer by any bailee of the goods except a carrier that the
bailee holds the goods for the buyer;
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 non-negotiable bill of lading is not obliged to obey a
notification to stop received from a person other than the consignor.