[Dress Shop Problems] Lara, Who Has a Ladies' Dress Shop

Multiple Choice

[Dress Shop Problems] Lara, who has a ladies' dress shop, reached an oral agreement with Kim, a wholesaler, to purchase 100 dresses for $80 each, with the dresses to be delivered within 30 days. Kim later orally agreed to a modification whereby she would add ten belts to go along with certain dresses at no extra charge. Kim did so because she wanted to maintain Lara's good will. Lara sent Kim a memo confirming their oral agreement, including the modification, but heard nothing. When the dresses did not arrive within 30 days, Lara checked with Kim. Kim told her that their agreement was no good because Kim never signed anything and that the UCC does not apply in the retail arena.
-Which of the following is true regarding Kim's statement that the UCC does not apply in the retail arena?

A) Kim is correct in that the UCC does not apply in the retail arena.
B) Kim is partially correct. The UCC does not apply in the retail arena if the parties have had significant past dealings under common law.
C) Kim is partially correct. The UCC does not apply in the retail arena if the parties are located in the same state.
D) Kim is partially correct. The UCC does not apply in the retail arena if the contract at issue is for an amount under $10,000.
E) Kim is incorrect.