§ 34.1-2-705 — Seller's stoppage of delivery in transit or otherwise

(a) The seller may stop delivery of goods in the
possession of a carrier or other bailee when he discovers the
buyer to be insolvent (section 34.1-2-702) 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.
(b) As against such buyer the seller may stop delivery
until:
(i) Receipt of the goods by the buyer; or
(ii) Acknowledgment to the buyer by any bailee of the
goods except a carrier that the bailee holds the goods for the
buyer; or
(iii) Such acknowledgment to the buyer by a carrier
by reshipment or as a warehouse; or
(iv) Negotiation to the buyer of any negotiable
document of title covering the goods.
(c) (i) To stop delivery the seller must so notify as to
enable the bailee by reasonable diligence to prevent delivery of
the goods;
(ii) 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;
(iii) 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;
(iv) 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.