§ 7507
92 words·~1 min read·
/ca/commercial-code/7507A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 7508, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that:
(1)the document is genuine;
(2)the transferor does not have knowledge of any fact that would impair the document’s validity or worth; and
(3)the negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.