What does the 'Grade' mean?

All of our stock is carefully checked, and given a graded rating, with quality reports on request.  We place our items in two categories: 

Unboxed, new, in excellent condition, with very minor imperfections if any.  No visible signs of use and in full 100% working order.

Unboxed, new, has light signs of wear and tear and/or minor scuffs, scratches or damage to the material.  The item is still in full 100% working order.