Question
Timeless Televisions, Inc. contracts to deliver one hundred 72- inch 3D HD television sets to a new retail customer, Simpson's Electronics, on May 1, F.O.B.
Timeless Televisions, Inc. contracts to deliver one hundred 72- inch 3D HD television sets to a new retail customer, Simpson's Electronics, on May 1, "F.O.B. Seller's dock" with $25,000 payment to be made upon tender of delivery to Simpson's. Timeless tenders delivery using Atlas Truck Lines for the transportation and delivery to Simpson's. Simpson's manager notices that some of the cartons have scrape marks. Simpson's owner phones Timeless' office and asks whether the sets might have been damaged as they were being loaded or during transit. Timeless assures Simpson's that the sets were in perfect condition when loaded onto the Atlas truck at its dock. Simpson's then tenders a check for the purchase price to Atlas driver for delivery to Timeless, but the Atlas driver refuses, claiming that this was a first delivery to Simpson's and he was required to receive only cash or a bank's cashier's check for payment. Simpson's owner contacts Timeless and promises to arrange and transmit a wire of the purchase funds to Timeless within two days. Timeless then directs the driver to leave with the sets with Simpson's, which stores them in its warehouse pending its "Grand Opening Sale" on May 15. Two days later, Simpson's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair. Simpson's then suspends payment to Timeless. Timeless claims Simpson has accepted the sets and is in breach by not paying on delivery or by wire on the later agreed date.
Please provide a key word outline and narrative answer to the below questions.
1.Between Timeless and Simpson's, who had the risk of loss if the sets were damaged during transit?
2.What is Atlas responsibility to anyone for any in transit damage to the sets?
3.What were Simpson's rights and duties in regard to inspecting the television sets delivered?
4.Will Timeless succeed on its claims.
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