1. Chris was a merchant who deposited 1,000 surf boards in a public warehouse operated by Welcome Warehouse. Chris was issued a warehouse receipt for the 1,000 surf boards that by its terms was deliverable "to bearer." Chris had engaged in many other transactions with Welcome and was in arrears for quite a bit of money to Welcome. Chris duly negotiated the warehouse receipt to Esmeralda Enterprises in payment of cash. Chris's financial affairs continued to deteriorate and Welcome never was paid the debt. When Esmeralda's agent requested the surf boards and offered to remit the warehouse receipt, Welcome refused to release the surf boards, claiming a lien on the surf boards for Chris's debt. Esmeralda sued. Decide the case.