Signal Sets Company Contracts to Deliver One Hundred 52-Inch Plasma

question 25

Essay

Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition television sets to a new retail customer,Tuner TV Store,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 warehouse 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:

Sales Price

The selling price set for a service or product aimed at consumers.

Contingent Liabilities

Potential liabilities that may occur depending on the outcome of a future event or set of circumstances.

Damage Awards

Monetary compensation determined and ordered by a court for losses or injuries suffered as a result of unlawful actions or negligence by another party.

EPA Fine

A penalty imposed by the Environmental Protection Agency for violations of environmental laws or regulations.