Reed is interested in starting a collection of valuable first-edition books. Reed met with Martina, an expert in rare books and consultant to collectors of rare and first-edition books. Martina told Reed that she had recently acquired a very rare, first-edition book worth $3500. Martina stated she would sell the book to Reed for $3500 to start his collection. Neither Martina nor Reed knew the book was a newly printed fake worth only $50. Reed trusted Martina and bought the book from her for $3500.

Within days after the purchase, Reed took the book to an antiques appraiser and learned the book was a fake. He informed Martina who was shocked to learn the book was a fake.

A. What options does Reed have, if any, regarding the contract with Martina for the purchase of the fake book?

B. What options does Martina have, if any, regarding the contract with Reed for the purchase of the fake book?

Label answer parts.