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The International Warehouse Logistics Association has decided to make certain revisions to the Standard Contract Terms and Conditions for Merchandise Warehouses (or Standard Contract, for short) to be consistent with modifications to Article VII of the Uniform Commercial Code.
Originally drafted in 1968, the Standard Contract has long served as a precedent for the warehouse logistics industry as the universally recognized contract for public warehousing. The document underwent a revision in 1998 after careful review and deliberation by the association membership. In light of the redraft of Article VII of the Uniform Commercial Code, which is in the process of being ratified at the state level (currently 36 states have ratified the revised article), the association decided to make some changes in the Standard Contract.
The revisions do not detract from the integrity of the document's original intent. They more accurately reflect modern technology as well as today's business environment (e.g., making the document gender-neutral). In recognition of the Standard Contract as an industry precedent, the association made every effort to keep modifications to the original document to a minimum; however, a few additional provisions were incorporated as part of this industry standard. Certain modifications are outlined below:
• References to negotiable warehouse receipts were eliminated from the document in recognition that today's business is conducted primarily with non-negotiable warehouse receipts.
• Clarifying language was added concerning shipments to and from warehouses.
• A warehouse lien provision was incorporated in recognition of the updated references to the warehouse lien found in the revised Article VII of the UCC.
• Documents of title have been addressed in recognition that many transactions are conducted electronically.
• Applicable law and jurisdiction were addressed as part of the updated document, in recognition that the forum in which the warehouse facility is located is appropriate.
A copy of the new Standard Contract Terms and Conditions for Merchandise Warehouses is available by contacting the International Warehouse Logistics Association (847) 813-4699 (www.iwla.com) and/or by contacting Ann Christopher at Kenco Management Services (423) 643-3215 or via e-mail at Ann.Christopher@kencogroup.com.
Source: Kenco Management Services
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