Which of the following statements is true of a negotiable document of title?
A) It serves as a contract between the seller and the shipper.
B) It is given to a buyer before he or she makes the payment for the goods.
C) It does not identify who has control of the goods.
D) It is used when a buyer rejects the goods delivered.

Question

Quizplus · Accepted Answer

Sometimes when the goods are being shipped by a professional carrier, the parties will use a negotiable document of title. For instance, a seller may ship the goods to the buyer with payment due on delivery. The document of title (a negotiable bill of lading) serves as the contract between the seller and the shipper as well as identifies who has title and control of the goods.

Which of the Following Statements Is True of a Negotiable