Warehouse Receipts Law: Understanding How US Receipt Laws Function
Understanding the terms of each US warehouse receipts law is crucial to your success. That’s why Moving Authority goes out of its way to make the law clear. As a result, moving and storage companies can discover ideal receipt processes. With improved systems, you can prevent disputes and claims from happening.
The warehouse receipt functions as a legal, written document. It’s provided by warehousemen for goods contained in a warehouse or storage facility. The receipt serves as clear evidence that a title exists for the stored items. Without evidence in place, your business could get sued through a dispute or claim. To help prevent this from happening, please continue reading about receipt laws. If you have any questions, you're welcome to contact Moving Authority.
The Basics of Warehouse Receipt Laws
There’s a general rule when it comes to almost any warehouse receipt. It is that a receipt does not have to get formatted in any certain form. But there is specific information that every receipt in a warehouse must contain. First, the receipt should state the location of your warehouse. Plus, receipts must also mention how goods and items get stored within warehouses. The date when the receipt went into effect must also go onto the receipt. US companies must also state the consecutive number of receipts. There are terms associated with every receipt inside a warehouse. Say that terms state that goods get delivered to a bearer of a receipt. This is crucial information that must get applied to the receipt. In fact, the receipt must reference any certain individual who receives delivered goods.
US receipt laws are very clear when it comes to handling all storage rate charges. Every charge must go inside a receipt. A company must also provide a brief description of each stored item. Or, a description related to the manner that goods got packed. Warehousemen must get trained to provide a signature on every single receipt. Or, the agent of the warehouseman can provide the signature. Of course, a warehouse receipt must feature the amount of each advance payment. (Assuming an advance payment took place in your warehouse.) Remember, warehousemen can get held liable for financial injury damages. That’s another reason to train your warehousemen about receipt laws.
It’s best to exercise caution when drafting each receipt in your warehouse. One single omission on a receipt could come back to haunt a storage business. Keep in mind that many warehouse receipts function as negotiable instruments. (Please scroll down to learn what a negotiable instrument is.) There’s a US law that governs negotiable instrument warehouse receipts. It’s called Article 7 of the Uniform Commercial Code. Please contact Moving Authority if you need our interpretation of this code.
What Is the Purpose of a Warehouse Receipt?
The key purpose of a warehouse receipt is to provide full-scale legal documentation. All receipt documentation should state a legal transfer of goods has taken place. This way, both the customer and business have strong evidence of storage at a warehouse. In essence, a warehouse receipt protects all parties involved in a transaction.
Is a Warehouse Receipt a Negotiable Instrument?
Oftentimes, a warehouse receipt does function as a negotiable instrument. But a warehouse repeat can have either negotiable or non-negotiable status. A negotiable receipt in a warehouse enables a transfer of ownership for a commodity. This way, the physical commodity does not have to get delivered. The average warehouse receipt under US law gets issued in a negotiable form. Thus, this receipt becomes eligible as collateral when it comes to loans.
What Are Negotiable Warehouse Receipts?
Negotiable warehouse receipts enable the legal transfer of ownership under US law. This refers to any goods or items stored at a warehouse. And there is no need to take action and deliver the physical commodity. A negotiable receipt at a warehouse gets issued in a clear, negotiable form. As a result, a receipt is eligible for collateral through most loan processes.
What Are the Common Types of Warehouse Receipts?
Only two main types of receipts at a warehouse exist according to United States laws. There are negotiable receipts and non-negotiable receipts. So, what is the purpose of a negotiable receipt? A negotiable receipt states goods can get delivered to whomever bears the document. This means, through the law, that collateral for loans is now at play. A non-negotiable receipt is less common than a negotiable receipt. The non-negotiable receipt only references the party that receives the delivered goods.
What Is a Warehouse Receipt System?
A warehouse receipt system is a crucial aspect of many businesses. The receipt system denotes the type of trade where commodities get stored. Receipt systems can provide a blueprint for how a commodity owner receives a receipt. A receipt system can certify the title of any commodity that gets deposited. For example, the system might state the value, type, quality, and quantity of goods.
Does your business need help setting up an improved warehouse receipt system? If so, please contact Moving Authority today. We can either improve your receipt system or create a new system. When doing so, our team adheres to all US laws. We can go law by law to ensure you're using a first-rate receipt system.
More About Receipts in a Warehouse & How US Law Affects Them
The warehouse receipt is one of the most important documents that a company can have. It’s a document that states proof of ownership for any type of commodity. A business cannot store goods at a warehouse until a receipt gets provided. That is an official US law. Again, any receipt at a warehouse can either have negotiable or non-negotiable status. A negotiable receipt positions transfer of ownership without physical delivery. The average receipt at a warehouse exists in negotiable form. Thus, the receipt contributes to a legal collateral loan process under the law. Meanwhile, non-negotiable receipts have to get endorsed when a transfer takes place.
Article 7 of the Uniform Commercial Code
US warehouse receipts get regulated through Article 7 of the Uniform Commercial Code. (At least, most receipts at a warehouse must adhere to this legal code and all laws.) Almost all United States jurisdictions have adopted Article 7 rules and laws. Through Article 7, the purpose of a warehouse receipt is to provide a guarantee. Under the law, receipts guarantee that a commodity exists. Plus, receipts state the quality, type, and quantity of each commodity. This applies to storage facilities all across the US.
The law states that receipts can also display transfer of ownership information. This can apply to either a future delivery date or an immediate delivery. A negotiable receipt at a warehouse does not focus on delivering the commodity. Instead, the purpose of this receipt is for settling expiring futures contracts. US law also states that warehouse receipts can display ownership of inventory goods. But that’s not all. Receipts can also mention unfinished goods that a warehouse stores. This is often the case when a distributor or manufacturer needs a receipt.
The Common Form of Receipts in a Warehouse
US laws are lenient when it comes to the certain form that a warehouse receipt has. But the law also states that a warehouse can become liable for damages. So, how does a warehouse prevent damages from taking place? It can do so by featuring crucial information on every single receipt. This includes where the goods get stored and the location of the warehouse facility. Companies also must state the date of issue on each receipt.
Does your warehouse use unique identification codes? If so, under US law, each code must get displayed on a receipt. The law also demands that every receipt must have a clear statement. A statement will reference to whom goods will get delivered to. That’s why it’s crucial to put the name of the customer on your warehouse receipt. Do you need a complete list of what must go on a receipt in your warehouse? If so, please contact Moving Authority today. Our experts can go law by law to help you improve your receipts. This way, your business can stay protected against claims and damages.
Do You Have a Question About Receipts for Your Warehouse? Please Call Moving Authority
If you have questions about receipts in your warehouse, Moving Authority is here to help. Our experts can address your concerns and help you find solutions that follow the law. We can even help your company create an improved warehouse receipt system. All you've got to do is give our receipt experts a call at any time. Or, you can send your question on our website or in an email. We look forward to helping you draft receipts that adhere to every US law.