§ 7-302. Through bills of lading and similar documents of title.
(a) The issuer of a through bill of lading, or other document of title embodying an
undertaking to be performed in part by a person acting as its agent or by a performing
carrier, is liable to any person entitled to recover on the bill or other document
for any breach by the other person or the performing carrier of its obligation under
the bill or other document. However, to the extent that the bill or other document covers an undertaking to
be performed overseas or in territory not contiguous to the continental United States
or an undertaking including matters other than transportation, this liability for
breach by the other person or the performing carrier may be varied by agreement of
(b) If goods covered by a through bill of lading or other document of title embodying
an undertaking to be performed in part by a person other than the issuer are received
by that person, the person is subject, with respect to its own performance while the
goods are in its possession, to the obligation of the issuer. The person's obligation is discharged by delivery of the goods to another person
pursuant to the bill or other document and does not include liability for breach by
any other person or by the issuer.
(c) The issuer of a through bill of lading or other document of title described in
subsection (a) is entitled to recover from the performing carrier, or other person
in possession of the goods when the breach of the obligation under the bill or other
(1) the amount it may be required to pay to any person entitled to recover on the
bill or other document for the breach, as may be evidenced by any receipt, judgment,
or transcript of judgment; and
(2) the amount of any expense reasonably incurred by the issuer in defending any action
commenced by any person entitled to recover on the bill or other document for the
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