Seton in Phoenix, according to a contract with Rider in New York, ships to Rider goods conforming

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Seton in Phoenix, according to a contract with Rider in New York, ships to Rider goods conforming to the contract and takes from the carrier the bill of lading for a shipper’s order that Seton indorses in blank and forwards by mail to Clemson, his agent in New York, with instructions to deliver the bill of lading to Rider on receipt of payment of the price for the goods. Forest, a thief, steals the bill of lading from Clemson and transfers it for value to Pace, a bona fide purchaser. Before the goods arrive in New York, Rider is insolvent. What are the rights of the parties?

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