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

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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:

Covariance

A measure that indicates the extent to which two variables change together, indicating the direction of their linear relationship.

Linear Relationship

A type of relationship between two variables where a change in one variable is associated with a proportional change in the other.

COV

COV refers to the coefficient of variation, a statistical measure of the relative dispersion or variability of a data set relative to its mean, expressed as a percentage.

Covariance

A measure that indicates the extent to which two variables change together; positive covariance indicates that both variables tend to move in the same direction.

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