Page:United States Statutes at Large Volume 50 Part 1.djvu/60

 75TH CONGRESS, 1ST SESSION-CH. 43-MARCH 17, 1937 securing performance by the buyer of his obligations under the contract. (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 pos- session 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 endorsed in blank, or to the buyer by the con- signe e named there in, one who pu rchases in go od faith, for value, the bill of lading, or goods from the buyer will obtain the property in th e goods, alth ough the bill of exchange h as not been h onored, provi ded that such purchaser has received del ivery of the bill of lading endorsed by the consignee named therein, or of the goods, without notice of the facts, making the transfer wrongful. SEC. 21. SALE BY AU CTION .-In the case of a sale by aucti on- (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 seller. (4) Where notice has not been given that a sale by auction is subject 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 h i m. Any sale contravening this rule may be' treated as fraudulent by the buyer. SEC. 22. Rise of Loss .-Unless otherwise agreed, the goods remain 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, exc ept th at- (a) Where delivery of the goods has been made to the buyer or to a bailee for the buyer, in pursuance of the contract and the prop- erty in the goods has been retained by the seller merely to secure performance 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 the 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. TR ANSFER OF TITLE SEC. 23. SALE BY A PERSON NOT TAE OWNER .-(1) Subject to the provisions of this Act, where goods are sold by a person who is not the own er thereof, a nd who does no t sell them u nder the autho rity or with the consent of the owner, the buyer acquires no better title Sale by auction. Risk of loss. Trans fer of t itle. Sale by other than owner. 35