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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 that was sold to the consumer?

China can sue Homestore for the contract price of the goods.

China can sue Homestore only for its lost profits.

China can replevin the goods from the customer because Homestore only had voidable title

China can get a decree of specific performance against the customer.

Operation Management, Management Studies

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