[Refused Furniture] Maya Arranged to Sell Furniture from Her Furniture

question 63

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 withhold his furniture?

• A) Luke is correct. Maya was required to deliver 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 withhold 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.

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Definitions:

Outliers

Outliers are data points that deviate significantly from the rest of the data, potentially indicating variability in the measurement or experimental errors.

Regression Line

A straight line that best fits the data points on a scatter plot, showing the relationship between two variables.

Standardized Residual

The difference between the observed and predicted values, divided by the standard deviation of the residuals.

Standard Error

A statistic that measures the variability or precision of the sampling distribution of a statistic.