1. A document of titleconfers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interestin the goods and thatdid not: a. deliver or entrust the goods or any document of title covering the goods to the bailor or the bailor’s nominee with: (1) actual or apparent authority to ship, store, or sell; (2) power to obtain delivery under section 554.7403; or (3) power of disposition under section 554.2403, 554.9320, 554.9321, subsection3, section 554.13304, subsection 2, or section 554.13305, subsection 2, or other statute or rule of law; or b. acquiesce in the procurement by the bailor or itsnominee of any document. 2. Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse receipt or billof lading covering the goods has been duly negotiated. That titlemay be defeated under section 554.7504 to the same extent as the rights of the issuer or a transferee from the issuer. 3. Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of any person to which a bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with part 4 pursuant to itsown bill of lading discharges the carrier’s obligation to deliver. [S13, §3138-a41, -b31, -b42; C24, 27, 31, 35, 39, §8276, 8287, 9701, 9962; C46, 50, 54, 58, 62, §487.32, 487.43, 542.41, 554.34; C66, 71, 73, 75, 77, 79, 81, §554.7503]
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