What is the objective theory of contracts

Assignment Help Other Subject
Reference no: EM132634535

In 1999, a Seattle man took a popular soft-drink company seriously when one of its commercials made an offer of a Harrier jet, the famous high-tech jump jet used by the U.S. Marines. In a television commercial that aired in 1995, the company jokingly included the Harrier as one of the prizes that could be received with a mere 7 million company points. Although that sounds like a lot of points to get from drinking the soft drink company's products (roughly 190 drinks a day for 100 years), the company also allowed customers to purchase points for 10 cents each.

The man did the math and discovered that the cost of the 7 million points needed for the jet was $700,000. He then put together a business plan, raised the $700,000 from friends and family, and submitted 15 points, the check, and an official order form with a demand for the Harrier jet.

The company wrote back, stating that the Harrier jet in the commercial was simply used to create a humorous and entertaining advertisement. They apologized for any misunderstanding or confusion people may have experienced and enclosed some free product coupons.

The free coupons did not satisfy the man, who then took the soft drink company to court. Finally, a federal judge for the Southern District of New York held that the company was only joking when it implied in its ad that it was giving away fighter jets. The judge noted that because the jets sell for approximately $23 million, no one could have concluded that the commercial actually offered consumers a Harrier jet. Instead, this was a classic example of a deal that was too good to be true.

1. What are the key legal factors present in the scenario?

2. What are the 4 elements of a valid contract? How do they relate to the scenario in question?

3. What is the objective theory of contracts?

4. How does the objective theory of contracts apply to this case?

5. In your own words but based on research and analysis of relevant legal concepts and cases, why do you think the court held that there was not a valid agreement in this scenario? Provide support for your position.

6. Are advertisements generally considered offers? Explain.

7. How does this case differ from a reward situation in which a unilateral contract is formed upon completion of the requested act?

8. What recommendations (at least 2) would you make for a company considering an aggressive marketing campaign with giveaways of high value items? Explain the rationale behind each recommendation.

 

Reference no: EM132634535

Questions Cloud

The right to get involved in discussion and voting : In America, everyone is encouraged to vote. Do you think they also have the right to get involved in discussion and voting?
Discusses how long it will take to acquire a new skill : Discusses how long it will take to acquire a new skill. For the discussion, what were your thoughts on the video? I hope you found it relatable and it made you
What will be the monthly break-even point of passenger cars : Estimated that the load factor will decrease to 70 percent. What will be the monthly break-even point in number of passenger cars?
Calculate the amount of cash payments Zetix was required : Calculate the amount of cash payments Zetix was required to make in each of the two calendar years that were affected by the note payable
What is the objective theory of contracts : What is the objective theory of contracts? Are advertisements generally considered offers? Explain. What are the key legal factors present in the scenario?
Prepare transactions for general fund : Prepare transactions for General fund. The City Council passed the budget for Fiscal Year 2018. The finance director estimates revenues
Identify the sponsoring organization of the FASB : Identify the sponsoring organization of the FASB and the process by which the FASB arrives at a decision and issues an accounting standard
Understanding the court system : The U.S. Court System is a complex system that includes both federal and state-level courts.
How do calculate australian assessable income : Calculate Australian assessable income for the 2017/18 and 2018/19 tax years. You must give reasons for the inclusion or exclusion of all receipts

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd