- Understand what a contract is
- Understand the four parts of a contract
- Understand when a contract is breached and what you can do about it
- Understand warranties
Contracts
Pepsi Points
You can view the transcript for “Pepsi Harrier Jet Commercial 1” here (opens in new window).
Suppose you are a Pepsi drinker. After seeing the commercial, you start collecting Pepsi Points. You also get a copy of the catalog that is briefly shown in the ad. In the catalog, it says that the cash value of each point is 10 cents. You do the math and figure out that the cash value of the 7,000,000 points for the jet is $700,000. You already collected 15 points from drinking Pepsi. The catalog said that you can buy additional Pepsi Points to claim a prize with a $10 shipping and handling fee. You send Pepsi your 15 points plus a check for $700,008.50 to claim the jet.
Explain whether Pepsi is obligated to give you the jet.