Reference no: EM133667440

Problem

Waymart Ltd., a full service department store, introduced a customer rewards program to encourage loyalty among shoppers and increase sales of low volume products. The program allowed customers to accumulate "W dollars" with each purchase at the store; these dollars could be redeemed toward purchases of select items. The bottom of each customer receipt states its W dollar value, and customers simply bring the receipt to the store and "spend it like money."

Every Monday, the store manager designates slow-moving products eligible for purchase with W dollars. Eligible products vary weekly depending upon which items have not sold. The marketing department put together a TV advertisement showing a family enjoying a summer afternoon in their backyard. An eight-person hot tub sat beside new patio furniture while one person barbecued on an expensive grill. The family was eating hamburgers and drinking lemonade from pretty plastic glasses. The caption read "Fulfill your dreams with W dollars."

Susan was planning to buy a $5000 hot tub at another store when she saw the advertisement, so she began collecting Waymart receipts. She bought all her groceries, household, and family supplies at Waymart, as did her mother and sister. Together they collected $3000 worth of W dollars in just four weeks, but she never saw a hot tub in the store. She did see patio furniture and barbecues, but she never saw them marked as eligible W dollar products. She went to the customer service counter and asked about buying a hot tub using her points as part of the purchase price. The clerk told her that Waymart did not carry hot tubs and that the W dollar campaign applied to lower priced items such as groceries and dishware.

Can Susan sue for breach of contract? Give reasons for your opinion. What could Waymart have done differently to protect itself from this legal risk?