A transferee of a nonnegotiable warehouse receipt acquires only the title and rights that the transferor had actual authority to transfer.

Question

Quizplus · Accepted Answer

A transferee of a nonnegotiable warehouse receipt acquires only the title and rights that the transferor had actual authority to transfer, as per the provisions of the Uniform Commercial Code (UCC) Section 7-504(2). Therefore, the statement is true.

A Transferee of a Nonnegotiable Warehouse Receipt Acquires Only the Title