Week 5: Discussion

Let’s put everything you have learned about contract law together.

In 1995, Pepsi had a promotion where you could buy Pepsi products and collect points, which you could use to purchase Pepsi T-shirts, sunglasses, and for 7,000,000 Pepsi Points, a Harrier Jet Fighter! (be thankful you weren’t a part of the marketing team at Pepsi back then).

John, a 21-year-old business student saw the commercial and realized that in place of labels, consumers could buy Pepsi points for ten cents each. He did the math and quickly figured out that it’d take him $700,000 to buy the Pepsi points he needed for the Harrier Jet Fighter. Then, Leonard hit the phones and convinced five well-off investors to give him the $700,000. He sent his Pepsi Points into Pepsi.

For This Discussion

1. What are John’s arguments that he should receive a Harrier Jet because a contract was formed (Look back to Week 4 for a discussion of offer and acceptance)?
2. What would Pepsi argue in defense that there was no contract?
3. Assume the court found that the commercial was a valid offer and John accepted the offer by turning in the Pepsi Points. What type of damages could John receive? Could he receive monetary damages? What type? What if he is seeking specific performance?