11/20/2020 Solved: Leonard v. PepsiCo, Inc., 210 F.3d 88 (2d Cir. 2000) [a... | Chegg.

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Leonard v. PepsiCo, Inc., 210 F.3d 88 (2d Cir. 2000) [affirming lower court decision and phone to post a question
reasoning in 88 F. Supp. 2d 116 (S.D.N.Y. 1999)] We'll send you a one-time
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FACT SUMMARY Pepsi ran an advertisement on national television promoting its Pepsi Points
program whereby consumers could obtain points by purchasing Pepsi products and then redeem
the points for certain apparel and other items. An alternate way to accumulate points was to
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purchase them for a certain dollar figure. The Pepsi advertisement opened with the morning
By providing your phone number, you agree to receive
routine of a high school student. The commercial was based on a Top Gun movie theme and a one-time automated text message with a link to get
the app. Standard messaging rates may apply.
depicted the student wearing apparel such as a leather bomber jacket, a Pepsi T-shirt, and
aviator sunglasses. For each item, the advertisement would flash the corresponding number of
Pepsi points required to obtain the item. For example, when showing the actor with the aviator
sunglasses, the advertisement featured the subtitle “Shades 175 Pepsi Points.” The My Textbook Solutions
advertisement then showed a view of the cover of a Pepsi Stuff Catalog with a narration of
“Introducing the new Pepsi Stuff Catalog” and the subtitle “See details on specially marked
packages.” Finally, the advertisement showed the student arriving at his high school in a Harrier
fighter jet to the amazement of his friends and teachers. The student hops out of the jet and
says, “Sure beats the bus.” At this point, the subtitle flashed, “Harrier jet 7,000,000 Pepsi points.”
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Leonard filled out the Pepsi Stuff order form (located in the catalog produced by Pepsi), but since for Legal... Advantage...
there was no mention of the Harrier jet, Leonard simply wrote in the item on the order form and 3rd Edition 17th Edition 3rd Edition

sent the order to Pepsi with a check for $700,000, the amount necessary to purchase the View all solutions
requisite points as stated in the advertisement. Pepsi refused to transfer title on the basis that no
contract existed. The trial court ruled in favor of Pepsi. Leonard appealed, among other reasons,
on the basis that the Pepsi advertisement was specific enough to constitute a valid offer of a
unilateral contract through its advertisement.

SYNOPSIS OF DECISION AND OPINION The court ruled against Leonard. While
acknowledging that certain advertisements could be an offer if the promise is clear, definite, and
explicit, such was not the case here. The advertisement was not sufficiently definite because it
reserved the details of the offer to a separate writing (the catalog).5

WORDS OF THE COURT: Requirements for Advertisements as a Unilateral Offer “In the present
case, the Harrier Jet commercial did not direct that anyone who appeared at Pepsi headquarters
with 7,000,000 Pepsi Points on the Fourth of July would receive the Harrier Jet. Instead, the
commercial urged consumers to accumulate Pepsi Points and refer to the catalog to determine
how they could receive their Pepsi Points. The commercial sought a reciprocal promise,
expressed through the acceptance of, and in compliance with, the terms of the Order Form. . . .
[T]he catalog contains no mention of the Harrier Jet.”

If the wording on the catalog order form had allowed a consumer to write in the item (rather than
check a box next to the item), would that change the outcome of this case?
5The court also rejected Leonard’s other primary argument that the advertisement constituted an
objective intent by Pepsi to sell a $23 million Harrier jet for $700,000. The court ruled, “In light of
the obvious absurdity of the commercial, the court rejects plaintiff’s argument that the commercial
was not clearly in jest.”

Step-by-step solution

Step 1 of 2

Case summary:

Company PP ran an advertisement on national television where an actor was depicting a role of
a school going student. In this ad, the actor was wearing leather jacket, expensive looking
sunglasses, and went on a bike (jet) to his school. With every product shown in the ad, PP
mentioned the number of points that customers have to earn to buy the product. This
advertisement then showed the cover of a catalogue using which the customers can buy
products by obtaining required number of points, or buy paying that amount to the company.
Person L filled the order form at the catalogue, and since the jet was not in the option given in the
form, L simply wrote “jet” at the product column, and sent it attaching a $7,000,000 check. This
amount was shown in the ad when the student rode the jet to his school. Over this, PP refused to
provide jet to L stating that no contact exists. The trial court favored PP stating that no unilateral
contract was formed between the parties.

Comment

Step 2 of 2

The outcome of this case would have not changed even if the wording on the catalogue order
form had allowed a consumer to write in the item, instead of checking a box next to the item. This
is because the court argued that the consumer can obtain any product from the list of items that
were given in the catalog. The order form in the catalog carried check box with the name of every
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11/20/2020 Solved: Leonard v. PepsiCo, Inc., 210 F.3d 88 (2d Cir. 2000) [a... | Chegg.com

item which can be obtained by the consumers. However, the catalog and the check boxes did not
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mention the product “jet”. Solutions Expert Q&A Practice 

On this basis, it can be said that as the catalog lacked details for buying the jet, the consumers
cannot
Chapter 6.3, Problem 2CQwrite the name of this product at the given space.
Bookmark ShowThis is the reason
all steps: ONwhy the outcome of

this case would have not changed even if the wording on the catalogue order form had allowed a
consumer to write in the item, instead of checking a box next to the item.

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