Logistics Document Primer #1
Bill of Lading: Overview
Governing Law for Bills of Lading

Depending on where the goods are transported, a bill of lading is governed by either or both:
- Article 7 of the Uniform Commercial Code (UCC) (UCC §§ 7–101–7–603) (see UCC Article 7).
- The Federal Bills of Lading Act (Federal Act) (49 U.S.C. §§ 80101–80116) (see Federal Bills of Lading Act).
The Federal Bills of Lading Act provides that a common carrier issuing a nonnegotiable bill of lading must put “non-negotiable” or “not negotiable” on the bill, although this requirement does not apply to an info-memorandum or acknowledgment
Types of Bills of Lading
A bill of lading can be either a:
- Negotiable instrument, which is generally called an order bill of lading (Order Bill of Lading).
- Non-negotiable document, which is generally called a straight bill of lading (Straight Bill of Lading).
A bill of lading as ordinarily issued is signed by the carrier only and it need not be signed by the shipper. Its terms and conditions are binding even though the bill is unsigned by the shipper, the signing of the bill only making it easier to prove the shipper was fully informed of its terms and assented thereto. In the case of goods received for transportation by rail or other land carriage, the bill of lading may be signed by the agent of the carrier who has authority to receipt for freight and to contract for its transportation of lading for such goods are regarded as simultaneous acts. With respect to a private contract of carriage, the bills of lading are not required to describe the condition of the goods.
Since a bill of lading acknowledges the receipt of goods for carriage, the delivery of the goods to the carrier should precede the execution of the bill, and the agent of a transportation company does not have the right to sign bills of lading until the goods have been actually delivered into the possession of the company. In practice, however, the delivery of the goods to be shipped and the delivery of a bill
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sources:
Westlaw
Thomson Reuters
