Which of the following is correct regarding Luke's assertion that Emilia cannot recover the cost of the caps?

A) Luke is correct. Emilia cannot recover because she has nothing in writing.
B) Luke is incorrect because the cost of the caps is insufficient to come within the requirement of a writing under the UCC.
C) Luke is incorrect because Emilia has witnesses.
D) Luke is incorrect because Emilia had already made the caps and she cannot sell them to another buyer.
E) Luke is incorrect both because Emilia had already made the caps and also because she had witnesses.

Luke is incorrect because under the Uniform Commercial Code (UCC), specifically Section 2-201(3)(c), a contract for the sale of goods for $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties. However, an exception to this rule is if the goods are specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of the seller's business, and the seller has made a substantial beginning of their manufacture or commitments for their procurement. In this case, because Emilia had already made the caps specifically for Luke's firm with the firm's name on them, and these caps cannot be sold to another buyer, this exception applies, making Luke's assertion incorrect.