Reference no: EM133620569
Problem
John Leonard, a 21-year-old business student, called Pepsi Co and was told he would need to drink 16.8 million cans of Pepsi in order to obtain the required points. He was also told that he had the option of buying Pepsi Co points for 10 cents each. Leonard developed a pool of investors (Pepsi drinkers) and delivered 15 PepsiCo points and a check for $700,008.50 for the remaining 6,999,985 points plus shipping and handling.
PepsiCo refused to provide Leonard with a Harrier jet because it said the ad was not an offer but a joke. Leonard filed a lawsuit but PepsiCo had already filed a pre-emptive suit asking that Leonard's suit be dismissed and declared frivolous, and that PepsiCo should be reimbursed for its legal expenses.
I. Did PepsiCo make an offer to enter into a contract? In your analysis, discuss the concept of offer and how it relates to whether Pepsi's offer was valid.
II. After reviewing the video and fact pattern, answer the following: Was Leonard's acceptance of Pepsi's offer valid? In your analysis, discuss the concept of acceptance and how it relates as to whether Leonard's acceptance of the offer was valid.
III. After reviewing the video and fact pattern, answer the following: Was a valid, legally binding contact entered into between Pepsi or Leonard? Why or why not?
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