Tom sold 100 cases of tomato soup to Louie for $1,500. Louie gave Tom a promissory note, which stated "I promise to pay to the order of Tom the sum of $1,500 three months from date, together with 5% interest." Tom negotiated the note, making it payable to Sally, in exchange for Sally's trampoline. Later, Louie discovers that the tomato soup was spoiled and is worthless. When Sally presents the note to Louie for payment, Louie refuses. Which of the following statements is true?
A. Louie doesn't have to pay Sally but would have to pay Tom if Tom presented the note.
B. Louie has to pay Sally, but she is a holder.
C. Louie has to pay Sally because she is a holder in due course.
D. Louie doesn't have to pay Sally because the tomato soup was spoiled.