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 whether Maya had a right to cancel the contract?
A) Luke was in breach giving Maya the right to cancel the contract.
B) Luke was only in partial breach, and Maya had no right to cancel the contract.
C) Luke was in breach, but Maya had no right to cancel the contract because Luke had the right to cover.
D) Luke was in breach, but Maya had no right to cancel the contract because a consumer transaction was involved.
E) Luke was in breach, but Maya had no right to cancel the contract because Luke was available for service of process.
Correct Answer:

Verified
Correct Answer:
Verified
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