Signal Sets Company Contracts to Deliver One Hundred Television Sets

question 36

Essay

Signal Sets Company contracts to deliver one hundred television sets to a new retail customer, Tuner Electronics Warehouse, on May 1, with payment to be made on delivery. Signal tenders delivery in its own truck. Tuner's manager notices that some of the cartons have scrape marks. Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded. Signal assures Tuner that the sets are in perfect condition. Tuner tenders Signal a check, which Signal refuses, claiming that the first delivery to new customers is always for cash. Tuner promises to pay the cash within two days. Signal leaves the sets with Tuner, which stores them in its facility pending its "Grand Opening Sale" on May 15. Two days later, Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair. Signal claims Tuner has accepted the sets and is in breach by not paying on delivery. Will Signal succeed on these claims? Explain.

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Definitions:

ERP Systems

Integrated software platforms used by organizations to manage and automate many back office functions related to technology, services, and human resources.

Radio Frequency Identification System

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Pull Strategy

A marketing technique aimed at creating demand for products directly from consumers, leading retailers to "pull" the products from the distribution channels.

Marketing Strategy

A company's plan for reaching prospective consumers and turning them into customers of their products or services.