Commercial Law, 2012 Bar — Question 5

MULTIPLE CHOICE

For a fee, X deposited 1,000 sacks of corn in the warehouse owned by Y. Y is in the business of warehousing. Y issued a warehouse receipt as proof of the possession of the 1,000 sacks of corn. The warehouse receipt states as follows: “De1iver to X or bearer 1,000 sacks of corn." X wanted to use the warehouse receipt as payment of his debt in favor of Z. How can the ownership of the goods covered by the warehouse receipt be transferred? A) Negotiate the warehouse receipt by just delivering the warehouse receipt to Z. B) Assign the warehouse receipt to Z to transfer ownership of the goods. C) Negotiate the warehouse receipt by specifically indorsing it to Z. D) The warehouse receipt in this case is nonnegotiable.

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