15. Roger deposited several boxes of goods with ABC Warehouse Corporation. The corresponding warehouse receipt was issued to the order of Roger. He endorsed the warehouse receipt to Mario who paid the same for value. Mario in turn negotiated the warehouse receipt to James. Before James could withdraw the goods, Melchor informed ABC Warehouse Corporation that the goods belonged to him and were stolen by Roger from his house. Melchor wants to get the goods, but James also wants to withdraw the same.

a) Who has a better right to the goods? Reason.

b) If ABC Warehouse Corporation is uncertain as to who is entitled to the property, what is the proper recourse of the corporation?