W.W.

In cases of CC use as "card-not-present" (mail order or etail) it is accepted law that the responsibility and risk for the transaction falls to the 'seller'.

Unfortunately, Knight has a choice to make. Either require signature/signature waiver (added cost), insurance (added cost), resend (added cost), do nothing and get a CC chargeback (added cost).

CC fraud has gotten so bad, that the banks and CC issuers got were able to push risk back on sellers for card-not-present transactions.

That is not to say there is an inherent responsibility to keep 'track of your stuff' when you are awaiting a shipment. But there is no legal responsibility to do so, unless you specifically waived signature and insurance, which I do not think he did.