SlideShare a Scribd company logo
1 of 1
Download to read offline
In 1998-99 John Leonard watched a Pepsi commercial and thought he had an opportunity to
purchase a Harrier Jet (military aircraft) worth approximately $23M for the cash equivalent of
$700K. He collected enough money, added the jet to the bottom of the order form in the Pepsi
catalog and sent it in to Pepsi. When they refused to produce the jet and returned his money, he
filed a lawsuit for breach of contract. He claimed that the Pepsi Commercial was a valid offer to
make and contact and he accepted that offer by sending in the money. After watching the video
presentation of Pepsi's Harrier Jet Commercial, (Links to an external site.) discuss the following
questions completely using contract law principles.
1. How does the objective theory of contracts apply to this case? (The objective theory is
explained on pages 189-190 of your textbook. This rule states that unless a third party looking at
the situation objectively thinks that both the offeror and offeree want to enter into a contract, no
contract can be created. Offers or statements made in jest , anger or undue excitement do not
include the necessary intent to be valid offers. Did Pepsi intend to make an offer in this case?)
2. How does the "advertisement as a special offer" rule apply to this case? (This rule is found on
page 204 of the textbook. It says that a commercial or advertisement for the sale of goods - like
the Harrier Jet - is not offers to make a contract, even if a specific price for the good is listed by
the seller.)
3. The court concluded that no contract existed between John Leonard and Pepsi? Do you agree?
Beside to support whatever position you take using contract law principles.
For another perspective on this case, you may want to watch this video from things You Might
Not Know

More Related Content

Similar to In 1998-99 John Leonard watched a Pepsi commercial and thought he had.pdf

ETH 321 Final Exam1. Civil enforcement powers regarding federal .docx
ETH 321 Final Exam1. Civil enforcement powers regarding federal .docxETH 321 Final Exam1. Civil enforcement powers regarding federal .docx
ETH 321 Final Exam1. Civil enforcement powers regarding federal .docx
POLY33
 
Lecture 14 misrepresentations
Lecture 14 misrepresentationsLecture 14 misrepresentations
Lecture 14 misrepresentations
fatima d
 

Similar to In 1998-99 John Leonard watched a Pepsi commercial and thought he had.pdf (6)

Mercantile law - Summary for CPT
Mercantile law - Summary for CPTMercantile law - Summary for CPT
Mercantile law - Summary for CPT
 
OFFER.pptx
 OFFER.pptx OFFER.pptx
OFFER.pptx
 
ETH 321 Final Exam1. Civil enforcement powers regarding federal .docx
ETH 321 Final Exam1. Civil enforcement powers regarding federal .docxETH 321 Final Exam1. Civil enforcement powers regarding federal .docx
ETH 321 Final Exam1. Civil enforcement powers regarding federal .docx
 
Law on obligations and contracts
Law on obligations and contractsLaw on obligations and contracts
Law on obligations and contracts
 
Lecture 14 misrepresentations
Lecture 14 misrepresentationsLecture 14 misrepresentations
Lecture 14 misrepresentations
 
F:\Haider\Valid Contract
F:\Haider\Valid ContractF:\Haider\Valid Contract
F:\Haider\Valid Contract
 

More from DylanUjJWhitea

In 2020- the world was made aware of the highly contagious and occasio.pdf
In 2020- the world was made aware of the highly contagious and occasio.pdfIn 2020- the world was made aware of the highly contagious and occasio.pdf
In 2020- the world was made aware of the highly contagious and occasio.pdf
DylanUjJWhitea
 
In 2019- a dam built to hold waste from a nearby iron ore mine owned b.pdf
In 2019- a dam built to hold waste from a nearby iron ore mine owned b.pdfIn 2019- a dam built to hold waste from a nearby iron ore mine owned b.pdf
In 2019- a dam built to hold waste from a nearby iron ore mine owned b.pdf
DylanUjJWhitea
 

More from DylanUjJWhitea (20)

In the context of the actions that individuals can take to deal with d.pdf
In the context of the actions that individuals can take to deal with d.pdfIn the context of the actions that individuals can take to deal with d.pdf
In the context of the actions that individuals can take to deal with d.pdf
 
In the 1960s few Canadians travelled abroad on holiday but with the gr.pdf
In the 1960s few Canadians travelled abroad on holiday but with the gr.pdfIn the 1960s few Canadians travelled abroad on holiday but with the gr.pdf
In the 1960s few Canadians travelled abroad on holiday but with the gr.pdf
 
In the balance sheet- long-term debt (liability for the debtor- asset.pdf
In the balance sheet- long-term debt (liability for the debtor- asset.pdfIn the balance sheet- long-term debt (liability for the debtor- asset.pdf
In the balance sheet- long-term debt (liability for the debtor- asset.pdf
 
In January- Sunland Tool & Die accumulated factory labour costs of $6-.pdf
In January- Sunland Tool & Die accumulated factory labour costs of $6-.pdfIn January- Sunland Tool & Die accumulated factory labour costs of $6-.pdf
In January- Sunland Tool & Die accumulated factory labour costs of $6-.pdf
 
In Figure 4- the target DNA used for a genetic study was digested with (3).pdf
In Figure 4- the target DNA used for a genetic study was digested with (3).pdfIn Figure 4- the target DNA used for a genetic study was digested with (3).pdf
In Figure 4- the target DNA used for a genetic study was digested with (3).pdf
 
In general- standard deviation quantifies the spread of a distribution.pdf
In general- standard deviation quantifies the spread of a distribution.pdfIn general- standard deviation quantifies the spread of a distribution.pdf
In general- standard deviation quantifies the spread of a distribution.pdf
 
In Figure 4- the target DNA used for a genetic study was digested with (2).pdf
In Figure 4- the target DNA used for a genetic study was digested with (2).pdfIn Figure 4- the target DNA used for a genetic study was digested with (2).pdf
In Figure 4- the target DNA used for a genetic study was digested with (2).pdf
 
In Early 2020- the COVID-19 pandemic began to spread within the United.pdf
In Early 2020- the COVID-19 pandemic began to spread within the United.pdfIn Early 2020- the COVID-19 pandemic began to spread within the United.pdf
In Early 2020- the COVID-19 pandemic began to spread within the United.pdf
 
In August 2022 prior to his annuity starting date Joege received a non.pdf
In August 2022 prior to his annuity starting date Joege received a non.pdfIn August 2022 prior to his annuity starting date Joege received a non.pdf
In August 2022 prior to his annuity starting date Joege received a non.pdf
 
In a random survey of 104 adults in a given community- citizens were a.pdf
In a random survey of 104 adults in a given community- citizens were a.pdfIn a random survey of 104 adults in a given community- citizens were a.pdf
In a random survey of 104 adults in a given community- citizens were a.pdf
 
In a school- 16- of the students have seen a school counselor about an.pdf
In a school- 16- of the students have seen a school counselor about an.pdfIn a school- 16- of the students have seen a school counselor about an.pdf
In a school- 16- of the students have seen a school counselor about an.pdf
 
In a particular hospital- 5 newborn babies were delivered yesterday- H.pdf
In a particular hospital- 5 newborn babies were delivered yesterday- H.pdfIn a particular hospital- 5 newborn babies were delivered yesterday- H.pdf
In a particular hospital- 5 newborn babies were delivered yesterday- H.pdf
 
in a between shbjects factorial design a researcher hsed tbe weighted.pdf
in a between shbjects factorial design a researcher hsed tbe weighted.pdfin a between shbjects factorial design a researcher hsed tbe weighted.pdf
in a between shbjects factorial design a researcher hsed tbe weighted.pdf
 
In 2020- the world was made aware of the highly contagious and occasio.pdf
In 2020- the world was made aware of the highly contagious and occasio.pdfIn 2020- the world was made aware of the highly contagious and occasio.pdf
In 2020- the world was made aware of the highly contagious and occasio.pdf
 
In 2019- a dam built to hold waste from a nearby iron ore mine owned b.pdf
In 2019- a dam built to hold waste from a nearby iron ore mine owned b.pdfIn 2019- a dam built to hold waste from a nearby iron ore mine owned b.pdf
In 2019- a dam built to hold waste from a nearby iron ore mine owned b.pdf
 
Import the dataset happiness from your data folder- This dataset cont.pdf
Import the dataset  happiness from your data folder- This dataset cont.pdfImport the dataset  happiness from your data folder- This dataset cont.pdf
Import the dataset happiness from your data folder- This dataset cont.pdf
 
Immunology a- What are the 4 categories of pathogens- What kinds of t.pdf
Immunology  a- What are the 4 categories of pathogens- What kinds of t.pdfImmunology  a- What are the 4 categories of pathogens- What kinds of t.pdf
Immunology a- What are the 4 categories of pathogens- What kinds of t.pdf
 
Imagine a terrible crime has occurred- Detectives that investigated fo.pdf
Imagine a terrible crime has occurred- Detectives that investigated fo.pdfImagine a terrible crime has occurred- Detectives that investigated fo.pdf
Imagine a terrible crime has occurred- Detectives that investigated fo.pdf
 
Imagine a country that has been stable for several decades- Some citiz.pdf
Imagine a country that has been stable for several decades- Some citiz.pdfImagine a country that has been stable for several decades- Some citiz.pdf
Imagine a country that has been stable for several decades- Some citiz.pdf
 
im having troble im having troble Consider the set of bivariate da.pdf
im having troble  im having troble    Consider the set of bivariate da.pdfim having troble  im having troble    Consider the set of bivariate da.pdf
im having troble im having troble Consider the set of bivariate da.pdf
 

Recently uploaded

1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
QucHHunhnh
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please Practise
AnaAcapella
 
Vishram Singh - Textbook of Anatomy Upper Limb and Thorax.. Volume 1 (1).pdf
Vishram Singh - Textbook of Anatomy  Upper Limb and Thorax.. Volume 1 (1).pdfVishram Singh - Textbook of Anatomy  Upper Limb and Thorax.. Volume 1 (1).pdf
Vishram Singh - Textbook of Anatomy Upper Limb and Thorax.. Volume 1 (1).pdf
ssuserdda66b
 

Recently uploaded (20)

ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.
 
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Kodo Millet  PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...Kodo Millet  PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
 
How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
 
ComPTIA Overview | Comptia Security+ Book SY0-701
ComPTIA Overview | Comptia Security+ Book SY0-701ComPTIA Overview | Comptia Security+ Book SY0-701
ComPTIA Overview | Comptia Security+ Book SY0-701
 
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptxSKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
 
FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024
 
Towards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptxTowards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptx
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptxBasic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please Practise
 
Vishram Singh - Textbook of Anatomy Upper Limb and Thorax.. Volume 1 (1).pdf
Vishram Singh - Textbook of Anatomy  Upper Limb and Thorax.. Volume 1 (1).pdfVishram Singh - Textbook of Anatomy  Upper Limb and Thorax.. Volume 1 (1).pdf
Vishram Singh - Textbook of Anatomy Upper Limb and Thorax.. Volume 1 (1).pdf
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
 
Single or Multiple melodic lines structure
Single or Multiple melodic lines structureSingle or Multiple melodic lines structure
Single or Multiple melodic lines structure
 
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfHoldier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdf
 
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptx
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptx
 

In 1998-99 John Leonard watched a Pepsi commercial and thought he had.pdf

  • 1. In 1998-99 John Leonard watched a Pepsi commercial and thought he had an opportunity to purchase a Harrier Jet (military aircraft) worth approximately $23M for the cash equivalent of $700K. He collected enough money, added the jet to the bottom of the order form in the Pepsi catalog and sent it in to Pepsi. When they refused to produce the jet and returned his money, he filed a lawsuit for breach of contract. He claimed that the Pepsi Commercial was a valid offer to make and contact and he accepted that offer by sending in the money. After watching the video presentation of Pepsi's Harrier Jet Commercial, (Links to an external site.) discuss the following questions completely using contract law principles. 1. How does the objective theory of contracts apply to this case? (The objective theory is explained on pages 189-190 of your textbook. This rule states that unless a third party looking at the situation objectively thinks that both the offeror and offeree want to enter into a contract, no contract can be created. Offers or statements made in jest , anger or undue excitement do not include the necessary intent to be valid offers. Did Pepsi intend to make an offer in this case?) 2. How does the "advertisement as a special offer" rule apply to this case? (This rule is found on page 204 of the textbook. It says that a commercial or advertisement for the sale of goods - like the Harrier Jet - is not offers to make a contract, even if a specific price for the good is listed by the seller.) 3. The court concluded that no contract existed between John Leonard and Pepsi? Do you agree? Beside to support whatever position you take using contract law principles. For another perspective on this case, you may want to watch this video from things You Might Not Know