From Clarkson, Business Law (12th ed.)
Ethical Perspective—Offers and Advertisements
Instructions:
As you read in the textbook, advertisements are generally viewed as invitations to negotiate, not as offers to form a contract. Nonetheless, sometimes advertisements are construed as offers, such as in the case of a PepsiCo, Inc., promotion that encouraged consumers to collect “Pepsi Points.”
Read https://en.wikipedia.org/wiki/Leonard_v._Pepsico,_Inc. and watch:
and then answer these questions:
1. What are the facts of the case?
2. What is the core legal issue the court needed to resolve? How did it resolve the issue?
3. Do you agree with how the court applied the “reasonable person standard” in this case?
4. What could PepsiCo, Inc., have done to avoid misunderstanding by its customers, as in this case? Did PepsiCo act ethically in denying that the Harrier Jet was a real prize?
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