China Manufacturers had a contract with Homestore for 12 dozen dinnerware sets to be delivered in four installments. China has made two deliveries,…

China Manufacturers had a contract with Homestore for 12 dozen dinnerware sets to be delivered in four installments. China has made two deliveries, which Homestore has not yet paid for. A third delivery is in transit on Rapid Lines, a common carrier. China has since learned (1) that Homestore is insolvent and (2) that Homestore has already sold the first shipment to a customer, who paid for the goods and took them home. What are China’s rights in regard to the shipment in transit?