1. One of these statements is not correct: a. A warehouse receipt serves as proof of possession of the warehouseman of the goods described in it and as authorization for the possessor of the warehouse receipt to transfer or receive the goods described in it. b. A non-negotiable receipt is one in which it is stated that the goods received will be delivered to the depositor or to any other specified person. c. A negotiable receipt is a receipt in which it is stated that the goods received will be delivered to the bearer or to the order of any person named in the receipt. d. A warehouse receipt is not a document of title. 2. One of these statements is not correct: a. When a negotiable instrument is altered, it becomes null and void. When a negotiable warehouse receipt is altered, it is still valid but may be enforced only in accordance with its original tenor. b. A negotiable instrument which is originally payable to bearer remains so payable even if it is indorsed specially. A negotiable receipt deliverable to bearer if indorsed specially becomes deliverable to order. c. The holder in due course of a negotiable instrument may be able to obtain a title better than that of the indorser. An indorsee of a negotiable receipt acquires only such title as the person who negotiated had over the goods even if he is a holder in due course. d. Both in a negotiable instrument and in a negotiable receipt the indorser warrants that all prior parties had capacity to contract. I. Duties of Warehouseman A. Delivery of Goods 1. One of these is not required to bind the warehouseman to deliver the goods: a. An offer to satisfy his lien.
b. An offer to surrender the receipt, if it is negotiable, with
indorsements necessary for its negotiation. c. A readiness and willingness to sign upon delivery of the goods, an acknowledgment that they have been received, if the warehouseman requests it. d. An undertaking to hold the warehouseman harmless from claims of third parties. 2. A warehouseman is not justified in delivering the goods to one of the following: a. The person lawfully entitled to the possession of the goods or his agent. b. A person entitled to the delivery by the terms of the nonnegotiable receipt for goods or has written authority from such person. c. A person in possession of a negotiable receipt for goods deliverable to him or his order or to bearer, which has been indorsed to him or in blank by the person to whom delivery was promised or by his indorsee. d. The pledgee of the goods covered by the receipt. 3. One of these statements is not correct: a. The general rule is that a warehouseman cannot invoke the right or title of a third person as an excuse for not delivering the goods covered by a receipt. b. By way of exception, the warehouseman may withhold delivery until he has had reasonable opportunity to ascertain the validity of the claim of the third party or to file an action for interpleader. c. If the goods were lawfully sold to satisfy the lien of the warehouseman or were lawfully sold or disposed of because of their perishable or hazardous nature, the warehouseman is not liable for not delivering them. d. If the warehouse receipt was fraudulently altered, the warehouseman will be discharged from liability to deliver the goods. 4. One of these statements is not correct: a. A warehouseman cannot set up title in himself as an excuse for refusing to deliver the goods unless the title is directly or indirectly from a transfer by the depositor or from enforcement of his lien.
b. If a warehouseman delivers goods covered by a
warehouse receipt and does not take up and cancel it, he will be liable to anyone who purchases the warehouse receipt in good faith and for value. c. If a warehouseman delivers a part of the goods for which he issued a negotiable receipt and did not take up and cancel the receipt or state plainly upon it what goods were delivered, he will be liable to anyone who purchased the receipt in good faith and for value. d. A warehouseman is not liable to the holder of a receipt if the goods do not correspond with the description in it. B. Safekeeping of the Goods 1. One of these statements is not correct: a. A warehouseman is liable for any loss or injury to the goods caused by his failure to exercise such care as a reasonably careful owner would exercise. b. In the absence of a stipulation to the contrary, the warehouseman is not liable for any loss or injury to the goods which could not have been avoided by exercise of such care. c. A warehouseman is not liable for loss due to a fortuitous event. d. The person claiming the goods has the burden of proving the loss was due to the fault of the warehouseman.