Placed down payment on a mobile home that had already been sold

I went to a mobile home dealer and found a home I wanted to buy. I was given a price quote which I accepted and filled out a credit application and paid a down payment and left. A few days later the salesman that I dealt with called me and started trying to get me interested in buying a different home because ordering a new one would put the price out of my range. I asked what happened to the one I looked at on the lot and put a down payment on? He said "Oh, that one was already sold and I didn't know it. The other salesmen and I don't really get together and discuss these things."

My question is: Is it legal to accept a down payment and give a price quote, and fill out an application for a specific home if the home is already sold?