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The Honda car dealership places a full page ad in the newspaper with pictures and prices for 3 models of Honda. Due to an error on the part of the newspaper, the price of the 2008 Honda Accord is listed as $200 instead of $20,000. Bill sees the ad while drinking his morning coffee and rushes down to the dealership and says to the first salesman he sees: "I accept your offer to sell a 2008 Honda Accord for the advertised price of $200". Which of the following is true:
- Under the common law of contracts, the dealership is not legally obligated to sell Bill the car for the advertised price because the advertisement is a solicitation of an offer; it is not an offer.
- A contract has been formed through offer and acceptance.
- If the error had been caused by the Honda dealership instead of by the newspaper, then a valid enforceable contract would have been formed.
- Because the error in the newspaper was a mutual mistake, the Honda dealership can not rescind the contract.
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