Saturday, May 17, 2014

Leonard v. Pepsi Co. case brief summary

·         Facts: Promotional campaign for Pepsi Points & Pepsi Stuff. Ad used “adolescent fantasy” to show various items available in catalogue w/ caption below stating number of points required, including one scene with Harrier jet with caption 7,000,000 points. Allowed to buy points for 10 cents, if lacking total for an item. Plaintiff raises $700,000 and sends it to Pepsi for Harrier jet, Defendant refuses claiming it was a joke.
·         Court finds that promotion did not constitute a valid offer – merely for commercial humor purposes. Beyond what reasonable person would have believed – had elements of exaggerated fantasy (price far too cheap & jet used for war)
·         Only one person sought to obtain the Harrier jet – goes to issue of reasonableness of offer
·         Court attempting to protect companies from unreasonable claims – would affect marketing and commercials
·         If Pepsi had lost, there would be behavior modifications that are not desired
Ruling against whomever exhibits the weird behavior to protect contracts in general
Two ways to determine mutual assent:
·         Early common law: “Meeting of the minds” à enforcement only if promisor subjectively believed s/he made a firm promise
·         Later, only outward, objective manifestations judged by reasonableness

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