Refused Furniture. Selina arranges to sell furniture from her furniture store to Roland for $3,000. Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments. Selina was to deliver the furniture by February 7. Roland did not pay Selina as promised on February 1. He asked her to wait until March 1, but she refused. She also refused to deliver the furniture. Selina was able to sell the furniture for only $2,500 because of a downturn in the economy. Roland told Selina that she had no right to withhold or sell his furniture and that he was suing. Selina incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased. Selina saved $40 in delivery costs because the subsequent purchaser picked up her own furniture. Which of the following is true regarding Roland's claim that Selina had no right to sell the furniture he initially purchased?

Multiple Choice

• Roland is incorrect, but only if Selina can prove that she had no reason to believe that he was a credit risk prior to signing the contract of sale.
• Roland is correct. Selina had no right to sell the furniture, but she retained the right to sue him for any deficiency.
• Roland is correct, but only because of the special Uniform Commercial Code exception for consumer goods.
• Roland is incorrect. Selina had a right to resell the furniture.
• Roland is correct because of federal consumer protection laws.