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Can you summarize MNST 336.2A-526?
UNIFORM COMMERCIAL CODE > LESSOR'S STOPPAGE OF DELIVERY IN TRANSIT OR OTHERWISE.
Short Summary
This provision, found in the Minnesota Statutes under the Uniform Commercial Code, governs the ability of a lessor to stop the delivery of goods in the possession of a carrier or other bailee. The lessor is permitted to stop delivery if they discover that the lessee is insolvent or if the lessee repudiates the lease contract or fails to make a payment due before delivery. The lessor may stop delivery until the goods are received by the lessee, acknowledged by a bailee (except a carrier) that holds the goods for the lessee, or acknowledged by a carrier via reshipment or as a warehouse. To stop delivery, the lessor must notify the bailee in a manner that allows them to prevent delivery. The bailee is then obligated to hold and deliver the goods according to the lessor’s directions, with the lessor being liable for any resulting charges or damages. However, a carrier who has issued a nonnegotiable bill of lading is not required to obey a stop delivery notification from anyone other than the consignor.
Whom does it apply to?
Lessors and lessees involved in lease contracts for goods
What does it govern?
Stoppage of delivery of goods by a lessor in certain circumstances
What are exemptions?
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.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Minnesota