A Pepsi promotion encouraged consumers to collect Pepsi points and redeem them for merchandise. If they did


A Pepsi promotion encouraged consumers to collect “Pepsi points” and redeem them for merchandise. If they did not have quite enough points for the prize they wanted, they could buy additional points for 10 cents each; however, at least 15 original Pepsi points had to accompany each order.
In an early commercial for the promotion, which can be viewed on the web at www.youtube.com/watch?v=U_n5SNrMaL8, three young boys are sitting in front of a high school, one reading his Pepsi Stuff catalog while the others drink Pepsi. All look up in awe at an object rushing overhead as the military march in the background builds to a crescendo. A Harrier Jet swings into view and lands by the side of the school building next to a bicycle rack. Several students run for cover, and the velocity of the wind strips one hapless faculty member down to his underwear. The voice-over announces: “Now, the more Pepsi you drink, the more great stuff you’re gonna get.”
A teenager opens the cockpit of the fighter and can be seen, without a helmet, holding a Pepsi. He exclaims, “Sure beats the bus,” and chortles.
The military drumroll sounds a final time as the following words appear: “Harrier Fighter 7,000,000 Pepsi Points.” A few seconds later, the following appears in more stylized script: “Drink Pepsi—Get Stuff.”
A 21-year-old student named John Leonard decided to accept what he believed was Pepsi’s offer of the Harrier fighter jet for 7 million Pepsi points. He quickly realized it would be easier to raise the money to buy points than to collect 7 million points. In early March 1996, he filled out an order form requesting the jet and submitted it to Pepsi, along with 15 Pepsi points and a check for $700,000.

In response, Pepsi sent him a letter saying, “The item that you have requested is not part of the Pepsi Stuff collection. It is not included in the catalogue or on the order form, and only catalogue merchandise can be redeemed under this program.” Leonard sued for breach of contract.
1. Did Pepsi offer to sell the Harrier jet for 7 million points?
2. Did Leonard’s submission of the order form constitute an acceptance of an offer?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Dynamic Business Law

ISBN: 9781260733976

6th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

Question Posted: