A.R.S. § 47-7104: Negotiable and nonnegotiable document of title

A. Except as otherwise provided in subsection C, a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named person.

B. A document of title other than one described in subsection A is nonnegotiable. A bill of lading that states that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against an order in a record signed by the same or another named person.

C. A document of title is nonnegotiable if, at the time it is issued, the document has a conspicuous legend, however expressed, that it is nonnegotiable.