Leonard V. Pepsico
Leonard v. PepsiCo an Offer Too Good To Be True
American InterContinental University
Abstract In this week’s Individual Project we are asked to consider specific questions in regards to the case of a Seattle man who took on a soft drink giant in regards to a Harrier Jet. The following pages will discuss first the four elements of a valid contract and then move into a discussion of the objective theory of contracts. The objective theory of contracts will then be applied specifically to the Leonard v. PepsiCo case. Next a discussion of why the court held there was not a valid contract in the Leonard v. PepsiCo case will lead into an explanation of why advertisements are not generally considered to be offers. In conclusion a discussion will be submitted as to why this case differs from a case in which a unilateral contract is formed by the completion of a specified act by using the example of the Carlill v. Carbolic Smoke Bomb Company as set forth in the Leonard v. PepsiCo case.
Leonard v. PepsiCo an Offer Too Good to Be True For this Individual Project we are asked to consider a deal that was “too good to be true” the purchase of a $23 million dollar Harrier Jet, allegedly offered by “a popular soft drink company” for $7,000,000 “Pepsi Points” which could also be purchased for 10 cents apiece. After calculating the cost an enterprising Seattle man submitted 15 points, a check equivalent to the value of the remaining points $700,000, the order form and a demand for the jet. In response he received an apology and some product coupons. In a letter expressing the company’s regret for Mr. Leonard’s misunderstanding their intentions PepsiCo explained they did not have listed in their catalog nor have any intention of offering a Harrier Jet in exchange for Pepsi Points. They further explained the jet shown in the commercial was simply used to create a “humorous and entertaining advertisement”. Neither amused or satisfied the Seattle man Mr. Leonard took the
American InterContinental University
Abstract In this week’s Individual Project we are asked to consider specific questions in regards to the case of a Seattle man who took on a soft drink giant in regards to a Harrier Jet. The following pages will discuss first the four elements of a valid contract and then move into a discussion of the objective theory of contracts. The objective theory of contracts will then be applied specifically to the Leonard v. PepsiCo case. Next a discussion of why the court held there was not a valid contract in the Leonard v. PepsiCo case will lead into an explanation of why advertisements are not generally considered to be offers. In conclusion a discussion will be submitted as to why this case differs from a case in which a unilateral contract is formed by the completion of a specified act by using the example of the Carlill v. Carbolic Smoke Bomb Company as set forth in the Leonard v. PepsiCo case.
Leonard v. PepsiCo an Offer Too Good to Be True For this Individual Project we are asked to consider a deal that was “too good to be true” the purchase of a $23 million dollar Harrier Jet, allegedly offered by “a popular soft drink company” for $7,000,000 “Pepsi Points” which could also be purchased for 10 cents apiece. After calculating the cost an enterprising Seattle man submitted 15 points, a check equivalent to the value of the remaining points $700,000, the order form and a demand for the jet. In response he received an apology and some product coupons. In a letter expressing the company’s regret for Mr. Leonard’s misunderstanding their intentions PepsiCo explained they did not have listed in their catalog nor have any intention of offering a Harrier Jet in exchange for Pepsi Points. They further explained the jet shown in the commercial was simply used to create a “humorous and entertaining advertisement”. Neither amused or satisfied the Seattle man Mr. Leonard took the
References: Bassey, I. (n.d.). Busn310 international legal and ethical issues in business multimedia printable version week 3, Retrieved from http://www.Mycampus.aiuonline.com/Classroom/Pages/multimediacourse… Larson, A. (2003) Contract law – an introduction. ExpertLaw Retireved from http://www.expertlaw.com/librabry/business/contract_law.html Leonard v. Pepsico, Inc., 1999 WL 587918 (S.D.N.Y.) United States District Court, S.D. New York Objective theory of contract law and legal definition. (n.d.). USLegal.com, Retrieved from http://definitions.uslegal.com/o/objective-theory-of-contract/