A entrusts a shipment of eel skins to an ocean carrier and obtains a bill of lading.The carrier delivers the goods to B without asking B to produce the document.Without knowledge of what has occurred,A sells the bill of lading to C,who is a good faith purchaser.In this case:

Question

Quizplus · Accepted Answer

Since the carrier delivered the goods to B without asking for the bill of lading, it has breached its duty to deliver the goods only against the surrender of the document, and therefore is liable to C for misdelivery. C, as a good faith purchaser of the bill of lading, is entitled to sue the carrier for the value of the goods. A's fraudulent sale of the bill of lading to C does not affect C's rights against the carrier. Option A is incorrect because C may still claim the value of the goods from the carrier. Option C is incorrect because there is no evidence of fraud on A's part. Option D is incorrect because the carrier's misdelivery is a civil wrong and not a criminal act.

A Entrusts a Shipment of Eel Skins to an Ocean