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

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Since the carrier delivered the goods to B without asking for the bill of lading, the carrier is liable for misdelivery. As a good faith purchaser, C has a cause of action against the carrier for failing to uphold their duty to deliver the goods only to the rightful holder of the bill of lading. C may seek compensation from the carrier for any loss or damage suffered as a result of the carrier's misdelivery. A may also be liable for fraud if they knowingly sold a bill of lading for goods that had already been delivered.

A Entrusts a Shipment of Eel Skins to an Ocean