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Signal Sets Company contracts to deliver one hundred

1. 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.