Iowa Code

Iowa Code § 554.2705 (2026)

Seller’s stoppage of delivery in transit or otherwise

✓ current as of July 2026

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1. The seller may stop delivery of goods in the possession of a carrier or other bailee when the seller discovers the buyer to be insolvent (section 554.2702) and may stop delivery of carload, truckload, planeload or larger shipments of express or freight when the buyer repudiates or fails to make a payment due before delivery or if for any other reason the seller has a right to withhold or reclaim the goods.

2. As against such buyer the seller may stop delivery until:

a. receipt of the goods by the buyer; or

b. acknowledgment to the buyer by any bailee of the goods except a carrier that the bailee holds the goods for the buyer; or

c. such acknowledgment to the buyer by a carrier by reshipment or as a warehouse; or

d. negotiation to the buyer of any negotiable document of title covering the goods. 3. a. To stop delivery the seller must so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.

b. After such notification the bailee must hold and deliver the goods according to the directions of the seller but the seller is liable to the bailee for any ensuing charges or damages.

c. If a negotiable document of title has been issued for goods the bailee is not obliged to obey a notification to stop until surrender of possession or control of the document.

d. A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor. [S13, §3138-a9, -a11, -a49, -b11, -b13, -b41; C24, 27, 31, 35, 39, §8256, 8258, 8286, 9669, 9671, 9709, 9986 – 9988; C46, 50, 54, 58, 62, §487.12, 487.14, 487.42, 542.9, 542.11, 542.49, 554.58 – 554.60; C66, 71, 73, 75, 77, 79, 81, §554.2705] 2007 Acts, ch 30, §45, 46, 60, 61 Referred to in §554.2702, 554.2703, 554.2707, 554.7403, 554.7504 \n

Notes of Decisions

Cited in 4 cases, 1983–2003 · leading case: C.F. Sales, Inc. v. Amfert, Inc., 344 N.W.2d 543 (Iowa 1983).

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C.F. Sales, Inc. v. Amfert, Inc., 344 N.W.2d 543 (Iowa 1983). · cites it 2× “Sales acknowledged the sale to the subsequent purchasers by accepting the release numbers that were presented, by shipping 108 tons of goods to Royster, and by beginning to load the remainder of the urea into cars for shipment.”

Purina Mills, L.L.C. v. Less, 295 F. Supp. 2d 1017 (N.D. Iowa 2003). · cites it 2× “stop deliveiy by any bailee as hereafter provided (section 554.2705) c. proceed under the next section respecting goods still unidentified to the contract; d.”

Pester Refining Co. v. MAPCO Gas Prods., Inc. (In Re Pester Refining Co.), 66 B.R. 801 (Bankr. S.D. Iowa 1986). · cites it 2× “§ 2-705 (1977) with Iowa Code § 554.2705 (1985), 3 Kansas StatAnn.”

Pester Refining Co. v. Mapco Gas Prods., Inc. (In re Pester Refining Co.), 845 F.2d 1476 (8th Cir. 1988). “The parties agree that the states of Iowa, Kansas, and Oklahoma all have possible connections to these transactions.”

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