N.Y. Uniform Commercial Code Law § 7-203: Liability for Nonreceipt or Misdescription

Section 7--203. Liability for Nonreceipt or Misdescription.

A party to, or purchaser for, value in good faith of a document of

title, other than a bill of lading, that relies upon the description of

the goods in the document may recover from the issuer damages caused by

the nonreceipt or misdescription of the goods, except to the extent

that:

(1) the document conspicuously indicates that the issuer does not know

whether all or part of the goods in fact were received or conform to the

description, such as a case in which the description is in terms of

marks or labels or kind, quantity, or condition, or the receipt or

description is qualified by "contents, condition, and quality unknown",

"said to contain", or words of similar import, if the indication is

true; or

(2) the party or purchaser otherwise has notice of the nonreceipt or

misdescription.