§ 7505 Endorsement Liability Limitation

• •If you sign the back of a paper that shows you own something (like a storage receipt), you’re not responsible if the person holding your stuff messes up.
• •You also don’t have to pay for mistakes made by people who signed the paper before you.
• •This rule is only for physical papers, not digital ones.

You store your bike at a bike shop and get a receipt. You sign the back of the receipt to give it to your friend.

If the bike shop loses or breaks your bike, you don’t have to pay for it just because you signed the receipt. Your friend also can’t make you pay if the shop already messed up before you gave it to them.