The Vermont Statutes Online
Uniform Commercial Code
2A-526. Lessor's stoppage of delivery in transit or otherwise
(1) A lessor may
stop delivery of goods in the possession of a carrier or other bailee if the
lessor discovers the lessee to be insolvent and may stop delivery of carload,
truckload, planeload, or larger shipments of express or freight if the lessee
repudiates or fails to make a payment due before delivery, whether for rent,
security or otherwise under the lease contract, or for any other reason the
lessor has a right to withhold or take possession of the goods.
(2) In pursuing
its remedies under subsection (1) of this section, the lessor may stop delivery
(a) receipt of
the goods by the lessee;
acknowledgment to the lessee by any bailee of the goods, except a carrier, that
the bailee holds the goods for the lessee; or
(c) such an
acknowledgment to the lessee by a carrier via reshipment or as a warehouse.
(3)(a) To stop
delivery, a lessor shall so notify as to enable the bailee by reasonable
diligence to prevent delivery of the goods.
notification, the bailee shall hold and deliver the goods according to the
directions of the lessor, but the lessor is liable to the bailee for any
ensuing charges or damages.
(c) 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. (Added
1993, No. 158 (Adj. Sess.), § 10, eff. Jan. 1, 1995; amended 2015, No. 51, §
B.6, eff. June 3, 2015.)