Dunlop Sold Tires to Mew

Dunlop sold tires to Mew. The parties' contract prohibited Mew from re- selling the tires unless its sub- buyer agreed to abide by Dunlop's list price for the tires. Mew re- sold the tires to Selfridge. Under its contract with Mew, Selfridge agreed to (1) abide by Dunlop's list price, and (2) pay $50 to Dunlop for each tire that it sold in violation of that list price. Selfridge re- sold ten of the tires to its own customers for less than Dunlop's list price. Which of the following statements is most likely TRUE?

A) As a result of the contract between Mew and Selfridge, privity of contract exists between Dunlop and Selfridge.
B) Selfridge is required to pay $500 to Mew.
C) Selfridge is required to pay $500 to Dunlop only if Selfridge's contract with Mew is under seal.
D) Even though it promised to pay $50 to Dunlop for each tire sold in violation of the list price, and even though it sold ten tires at less than the list price, Selfridge is not liable to Dunlop.
E) Selfridge is required to pay $500 to Dunlop.