Question

New Furniture. Penny purchased $3,000 worth of furniture from Bob's furniture shop. Through an arrangement with Bob, Penny financed the purchase through a financing company called Let Us Help You. Twenty-nine days after the goods were delivered to her, Penny had a disagreement with Let Us Help You regarding the amount of interest she would be required to pay. She notified Bob on that day that she was rejecting the goods. Bob claimed that she did not properly reject the furniture and also that she acted in bad faith. Penny says that she properly rejected and denies that she acted in bad faith. She also says that, in any event, she cannot be charged with both wrongful rejection and also bad faith because of double jeopardy. Which of the following is the correct analysis of Penny's claim that she cannot be charged with both a wrongful rejection and bad faith because of the double jeopardy bar?

A. Penny is correct.

B. Penny is correct that she cannot be charged with both a wrongful rejection and bad faith; but the UCC requires that conclusion, not the double jeopardy bar.

C. Penny is correct that she cannot be charged with both a wrongful rejection and bad faith; but the common law requires that conclusion, not the double jeopardy bar.

D. Penny is correct that she cannot be charged with both a wrongful rejection and bad faith; but federal statutory law requires that conclusion, not the double jeopardy bar.

E. Penny is incorrect. She can be charged with both a wrongful rejection and also bad faith.

Answer

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