Page:United States Statutes at Large Volume 47 Part 1.djvu/1233

 72d C ONGRESS. SESS. II. CH. 128. FEBRUARY 27, 1933 . 1209 3 . Where goods are shipped, and by the bill of lading the goods are deliverable to the order of the buyer or of his agent, but possession of the bill of lading is retained by the seller or his agent, the seller thereby reserves a right to the possession of the goods as against the buyer. 4 . Where the seller of goods draws on the buyer for the price and transmits the bill of exchange and bill of lading together to the buyer to secure acceptance or payment of the bill of exchange, the buyer is bound to return the bill of lading if he does not honor the bill of exchange, and if he wrongfully retains the bill of lading he acquires no added right thereby. If, however, the bill of lading provides that the goods are deliverable to the buyer or to the order of the buyer, or is indorsed in blank, or to the buyer by the consignee named therein, one who purchases in good faith, for value, the bill of lading, or goods from the buyer will obtain the property in the goods, although the bill of exchange has not been honored, providthat such purchaser has received delivery of the bill of lading indorsed by the consignee named therein, or of the goods, without notice of the facts making the transfer wrongful. SEC. 617. SALE BY AucTION.-In the case of sale by auction- bale by auction. 1 . Where goods are put up for sale by auction in lots each lot is the subject of a separate contract of sale. 2 . A sale by auction is complete when the auctioneer announces its completion by the fall of the hammer, or in other customary manner. Until such announcement is made, any bidder may retract his bid and the auctioneer may withdraw the goods from sale unless the auction has been announced to be without reserve. 3 . A right to bid may be reserved expressly by or on behalf of the selle r. 4 . 'Where notice has not been given that a sale by auction is sub- ject to a right to bid on behalf of the seller, it shall not be lawful for the seller to bid himself or to employ or induce any person to bid at such sale on his behalf, or for the auctioneer to employ or induce any person to bid at such sale on behalf of the seller or knowingly to take any bid from the seller or any person employed by him. Any sale contravening this rule may be treated as fraudulent by the buyer. SEC. 618 . RISK of Loss .-Unless otherwise agreed, the goods re- Ri sk of loss. main at the seller's risk until the property therein is transferred to the buyer, but when the property therein is transferred to the buyer the goods are at the buyer's risk whether delivery has been made or not, except that- (a) Were delivery of goods has been made to the buyer, or to a bailee for the buyer, in pursuance of the contract and the property in the goods has been retained by the seller merely to secure perform- ance by the buyer of his obligations under the contract, the goods are at the buyer's risk from the time of such delivery. (b) Where delivery has been delayed through the fault of either buyer or seller the goods are at the risk of the party in fault as regards any loss which might not have occurred but for such fault. JEc. 619. SALE BY PERSON NOT THE OWN ER .-1. Sub ject to the pro- the Sale by person not visions of this chapter, where goods are sold by a person who is not the owner thereof, and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had, unless the owner of the goods is by his conduct precluded from denying the seller's authority to sell. 2. Nothing in this chapter, however, shall affect- (a) The provisions of any factors' acts, recording acts, or any reNoe effect acts. enactment enabling the apparent owner of goods to dispose of them as if he were the true owner thereof.