Facts: Brian Donovan, in the market for a used car, spotted a newspaper ad for a local Lexus dealer listing a sapphire blue Jaguar XJ6 Vanden Plas for $25,995. Jaguars of the same year and mileage cost about $8,000 to $10,000 more than the auto at the Lexus agency. Brian and his wife went to the dealer and attempted to purchase the car for the listed price. The dealer refused; it had paid $35,000 for the Jaguar and intended to sell it for about $37,000. The price in the newspaper ad arose from the newspaper’s typographical and proofreading errors, although the Lexus dealership had failed to review the proof sheet before the ad went to press. Brian sued. The trial court found that unilateral mistake prevented enforcement. The appellate court reversed, and Donovan appealed to the state’s highest court.

Questions:

1. Did the Lexus dealer’s mistake entitle it to rescind the contract?

2. I thought an advertisement was merely an invitation for an offer. Why did this advertisement create an offer?

3. The dealer could have caught this serious typo by proofreading the ad before the paper printed it. Did the court take that into account?

4. What would be the result if the court adopted the plaintiff’s argument and enforced this contract?

5. What’s the moral?