Multiple Choice
[Refused Furniture] Maya arranged to sell furniture from her furniture store to Luke for $3,000. Luke was required to give Maya a $500 deposit on February 1 and pay the remainder in monthly installments. Maya was to deliver the furniture by February 7. Luke did not pay Maya the deposit as promised on February 1. He asked her to wait until March 1, but she refused. She told him that the contract was canceled, and she refused to deliver the furniture at all. Due to a downturn in the economy, Maya was able to sell the furniture for only $2,500. Luke told Maya that she had no right to withhold or sell his furniture to another buyer, and that he was going to file suit. Maya also incurred $100 in additional advertising costs to advertise the furniture that Luke initially purchased. Maya saved $40 in delivery costs because she did not have to deliver the furniture to Luke and the subsequent purchaser picked up her own furniture.
-Which of the following statements is true regarding Luke's claim that Maya had no right to sell the furniture he initially purchased?
A) Luke is correct. Maya had no right to sell the furniture, but she retained the right to sue him for any deficiency.
B) Luke is correct but only because of the special UCC exception for consumer goods.
C) Luke is incorrect. Maya had a right to resell the furniture.
D) Luke is incorrect but only if Maya can prove that she had no reason to believe that he was a credit risk prior to signing the contract of sale.
E) Luke is correct because of federal consumer protection laws.
Correct Answer:

Verified
Correct Answer:
Verified
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