Legal Definitions - breaking bulk

Breaking bulk refers to two distinct concepts:

• In a commercial or logistics context, it describes the process of dividing a large, consolidated shipment of goods into smaller, more manageable units for further distribution, storage, or sale.

• In criminal law, it refers to a specific type of theft (larceny) committed by a person who has been entrusted with goods (known as a bailee), particularly a carrier. This occurs when the bailee unlawfully opens the packaging or container of the goods, removes items from within, and converts those items for their own personal use.

Here are some examples illustrating these meanings:

• Commercial Example: A major online retailer receives a massive ocean freight container filled with thousands of identical smart home devices, all packed in large, sealed cartons. Upon arrival at their fulfillment center, warehouse staff begin to open these large cartons and sort the individual devices into smaller batches, which are then prepared for shipment to individual customers or smaller regional warehouses.

  This illustrates the commercial meaning of breaking bulk because the retailer is taking a single, large shipment and dividing it into smaller, distributable units.

• Criminal Law Example (Carrier): A delivery driver is contracted to transport a truckload of sealed boxes containing high-end electronics from a manufacturer to various retail stores. During a scheduled break, the driver covertly opens several of the sealed boxes, removes a few valuable items like tablets and smartwatches, and then attempts to reseal the boxes to hide the theft before continuing the delivery route.

  Here, the driver, acting as a bailee (entrusted with the goods), committed "breaking bulk" in the criminal sense by unlawfully opening the sealed containers and stealing items for personal gain.

• Criminal Law Example (Warehouse Employee): An employee working in a secure pharmaceutical warehouse is responsible for managing incoming shipments of medications, which arrive in tamper-evident crates. The employee, intending to steal, uses a tool to carefully pry open one of these sealed crates, removes several packages of a high-demand drug, and then tries to re-seal the crate to avoid detection before taking the stolen medication home.

  This also demonstrates "breaking bulk" as a form of larceny. The employee, entrusted with the crates, unlawfully opened the sealed packaging and converted the contents to their personal use.