Business law Essay

Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition television sets to a new retail customer, wireless TV Store, on may 1, with payment to be made on delivery. Signal tenders delivery in its own truck. Tuners manager nonices that some of the cartons have scrape marks. Tuners owner phones Signals office and asks whether the sets might have been damaged as they were being loaded. Signal assures Tuner that the sets be in spotless 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, Tuners 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 non paying on delivery. Will Signal stic k to on these claims? Explain.Signal wont inevitably succeed on his claims. Acceptance of the goods prevents the buyer or lessee from exercising the right of rejection, but it does not necessarily prevent the buyer or lessee from pursuing other remedies (Business Law Today page 337). In some circumstances, a buyer or lessee are allowed to terminate their acceptance of the goods. The revocation of acceptance is not effective until the seller has been notified. The seller moldiness also be notified within a fair time after(prenominal) the buyer discovers or should have discovered the grounds for revocation. Tuner noticed cartons with scrape marks and right away questioned Signal, but Signal assured they would not be damaged. A couple days later Tuners stocker opens some cartons and then discovers the damages, notifying Signal. Two days later is within a reasonable time. Therefore Tuner has not breached for accepting the goods. He could now keep the goods and recover damages caused by Signals breach.Signal also verbalize that Tuner had breached contract for not paying on delivery. Payments can be made by any means agreed on by two parties. Under this contract there is no specific type of payment set. If the seller demands cash when the buyer offers a check, credit card, or the like, theseller must permit the buyer reasonable time to obtain legal tender (Business Law Today page 329). In this case Tuner offered Signal a check on the day of delivery, but Signal refuses, claiming the first delivery to new customers is always for cash. So signal must than give Tuner reasonable time to pay. In this case Tuner promises to pay the cash within two days. Therefore Signal is wrong and Tuner did not breach for not paying on day of delivery. Signal is most likely not going to succeed on his claims.