What is the difference between a straight bill of lading and an order bill?

What is the difference between a straight bill of lading and an order bill?

• A. A straight bill designates a named recipient and is non-negotiable; an order bill is negotiable and can be endorsed to transfer title.
• B. A straight bill is negotiable and can be endorsed.
• C. A straight bill transfers title on delivery; an order bill prevents transfer.
• D. A straight bill covers insurance; an order bill covers carriage only.

Answer: (A)

Negotiability and delivery rights are what set these apart. A straight bill of lading designates a named consignee and is non-negotiable; the carrier must deliver to that person or their authorized agent, and the bill cannot be endorsed to transfer title to someone else. An order bill of lading is negotiable; it can be endorsed and the title to the goods can pass to the endorsee through endorsement and delivery of the bill. This distinction explains why a straight bill is used for delivery to a specific recipient, while an order bill allows transfer of title by endorsement and sale in transit.

Negotiability and delivery rights are what set these apart. A straight bill of lading designates a named consignee and is non-negotiable; the carrier must deliver to that person or their authorized agent, and the bill cannot be endorsed to transfer title to someone else. An order bill of lading is negotiable; it can be endorsed and the title to the goods can pass to the endorsee through endorsement and delivery of the bill. This distinction explains why a straight bill is used for delivery to a specific recipient, while an order bill allows transfer of title by endorsement and sale in transit.