Tom falsely tells Harold that the car Tom is selling has only 30,000 miles on it. In fact, Tom has turned back the odometer and the true mileage is 150,000. Harold purchases the car by giving Tom a check for $3,000. Tom endorses the check to Sally in exchange for a plasma TV. Harold discovers the fraud and stops payment on the check, so it's dishonored when Sally deposits it in her bank account. Sally sues Harold to enforce payment of the check. 

Which of the following statements is true? 

A. Harold can successfully assert the defense of fraud in the inducement to avoid paying $3,000 to Sally. 

B. Harold can't successfully assert the defense of fraud in the inducement to avoid paying $3,000 to Sally. 

C. Harold must pay Sally, but only to the extent of the value of the plasma TV that Tom bought from Sally. 

D. Harold has a real defense that can be asserted against Sally.