Under stoppage in transit, which situation indicates goods are still in transit and subject to stoppage rights?

• A. Buyer obtains delivery.
• B. Carrier acknowledges holding after arrival for buyer.
• C. Carrier refuses to deliver.
• D. Goods rejected by buyer and carrier continues in possession.

Answer: (D)

Stoppage in transit rests on the goods still being in the hands of a carrier or other bailee, not delivered to the buyer. The moment delivery to the buyer occurs, the right to stop in transit generally ends.

In this scenario, the buyer has rejected the goods, but the carrier continues to hold them. That means the goods are still in the carrier’s possession and effectively still in transit. Because the transit has not concluded and the goods haven’t been delivered, the seller retains the right to halt the shipment and reclaim the goods.

If the buyer had already obtained delivery or the goods had arrived for the buyer, transit would be over and stoppage rights would no longer apply. A carrier refusing to deliver doesn’t definitively show ongoing transit in the same clear way as the carrier still holding the rejected goods does.