Was alitalia or marriott obligated to honor the low prices

Assignment Help Business Law and Ethics
Reference no: EM131914817

Problem: $4,934 Discount on Alitalia?

The Italian national airline, Alitalia, was charging more than $5,000 for trans-Atlantic, round-trip, business class airfares in 2006, but by mistake a fare was briefly listed online at $66.00. About the same time, Marriott was offering rooms at a New York City hotel for $24.90 when the intended price was $249.00. Alitalia honored 509 reservations at an expected cost of about $2.6 million. Marriott, however, raised the $24.90 rate to the intended $249.00. Errors of this kind happen with some frequency in the travel industry.

Questions

1. As a matter of business practice, how would you have dealt with your company's error had you been in charge at Alitalia or Marriott?

2. As a matter of law, was Alitalia or Marriott obligated to honor the low prices?

Reference no: EM131914817

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