Drew purchased a new iPhone from Apple (traditional retail price: $600, assume that the phone is a consumer good), by promising to make six monthly payments of $110 each, and also granting a security interest to Apple. Unfortunately, he came into financial difficulties and defaulted after making two monthly payments. Apple wrote to Drew the following letter: “We propose the following deal: you send us the phone, and we will not sue you for the missing $440 (the four missing monthly payments, each worth $110); you would not owe us anything after we receive the phone. We assume you agree to this deal unless you object within 20 days of us sending you this proposal.” Assume that nobody else has any interest in the phone besides Apple and Drew. Drew does not respond within a month, and Apple claims that it now has the right to the phone in satisfaction of the full debt. Is Apple right?

a) Yes, since Apple has acted in a commercially reasonable way

b) Yes, since Drew waived the right to have the collateral disposed of in a commercially reasonable way

c) No, since Drew has already paid so much for the phone that Apple has to dispose of the phone in a commercially reasonable way

d) No, since the phone is in possession of Drew