MCC Business Law John Leonard versus Pepsi Discussion

In 1998-99 John Leonard watched a Pepsi commercial and thought he had an opportunity to purchase a Harrier Jet (military aircraft) worth approximately
$23M for the cash equivalent of $700K. He collected enough money, added the jet to the bottom of the order form in the Pepsi catalog and sent it in to
Pepsi. When they refused to produce the jet and returned his money, he filed a lawsuit for breach of contract. He claimed that the Pepsi Commercial was
a valid offer to make and contact and he accepted that offer by sending in the money. After watching the YouTube video presentation of Pepsi’s Harrier Jet
Commercial, discuss the following questions completely using contract law principles.
1. How does the objective theory of contracts apply to this case? (The objective theory is explained on pages 189-190 of your textbook. This rule states
that unless a third party looking at the situation objectively thinks that both the offeror and offeree want to enter into a contract, no contract can be
created. Offers or statements made in jest, anger or undue excitement do not include the necessary intent to be valid offers. Did Pepsi intend to make an
offer in this case?)
2. How does the “advertisement as a special offer” rule apply to this case? (This rule is found on page 204 of the textbook. It says that a commercial or
advertisement for the sale of goods – like the Harrier Jet – is not offers to make a contract, even if a specific price for the good is listed by the seller.)
3. The court concluded that no contract existed between John Leonard and Pepsi? Do you agree? Beside to support whatever position you take using
contract law principles.
For another perspective on this case, you may want to watch this video from
Things You Might Not Know
Write an original 200+ word post by Wednesday of the week the discussion is due. Give your opinion on the issue in a clear and understandable manner. Cite any
sources (other than the article you have been asked to read, video you have been asked to watch or the textbook) you use when writing your post at the end of your
submission. After writing your own post, reply to the posts of two other students before the discussion board due date (usually Friday). Replies should be at least
100 words long and ask questions or otherwise encourage discussion. Replies that simply compliment or disagree with a classmate’s post will not be accepted for
credit.