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 disagreed, and said that she properly rejected the goods, and denied that she had acted in bad faith.
She also said that, in any event, she cannot be charged with both wrongful rejection and also bad faith because of double jeopardy.
What standard of good faith would apply in this situation, and why? Is Penny correct? Why or why not?
Can Penny reject the furniture? What remedies does she have? What remedies does Bob have?