Harrier Jet Case Study

Improved Essays
The legal issue in this circumstance is of the contract and its validity. The first factor to consider is to determine if a contract even exists. The drink company implied, through a commercial advertisement that if an individual earned seven million company points, they would be rewarded with a jet. It needs to be determined if this was an offer made in the advertisement. The individual saw this commercial and did, in fact, reach the 7 million company points. He then wrote to the company and demanded to receive his prize. Did the company really mean to furnish the individuals who succeeded in reaching the 7 million points with a Harrier jet? Was it a part of the contract that was made?
What are the 4 elements of a valid contract? How do
…show more content…
There was never a meeting between either parties. It is possible that the advertisement was misleading and possibly false, but ultimately there was never a contract made between either party so it would not hold up in the court of law.
What is the objective theory of contracts?
The objective theory of contracts is the perception from an external source that examines the contract between parties without being biased. The contract must have all the elements of a contract, and is then determined if an offer was made and accepted. Only the facts are taken into account if it can be concluded that each party will be bound by the terms then the contract can be entered.
How does the objective theory of contracts apply to this case?
In this particular case, the company presented an offer of a Harrier jet to anyone who could reach the 7 million points required. The drink company did not intend to give a jet and it was merely a joke, but the man took the company very seriously. The courts looked at the case and determined that there was not a contract because they did not meet and it wasn't reasonable for a sane person to believe they could receive a jet worth $23,000,000.00. The judge was the unbiased individual that determined that no one could take the commercial as a contract

Related Documents

  • Great Essays

    Boeing is also the second largest defense contractor in the world and the largest exporter in the United States by dollar value. It is also one of the most checkered ethical records of any large corporation. The issue we going to discuss happened in 2003. Boeing hire Darleen Druyun, who was a Air Force procurement officer for the U.S government, as the Vice President of Boeing’s Defense missile systems. As a Air Force procurement officer, she was working on a $21 billion deal with Boeing while she…

    • 1159 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Ultratra Vires Case Study

    • 806 Words
    • 4 Pages

    6. ULTRA VIRES CONTRACTS A contract of company which is ultra vires, i.e., outside the objective clause as defined by memorandum of association is wholly void and is of no legal effect. The objection to an ultra vires contract is, not merely that the company ought not to have made it, but that it could not make it. The main issue is not as to the legality of the contract; but the issue is as to the competency and authority of the company to make it. An ultra vires contract which has the effect of void- ab- initio, cannot become intra vires by any reason of estoppels, lapse of time, ratification, acquiescence or delay.…

    • 806 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Boeing Mission Statement

    • 1638 Words
    • 7 Pages

    Operations $4,895,000 Net Income $4,895,000 Net Income Applicable to Common Shareholders $4,895,000 Summary Boeing is an aerospace company, who specializes in engineering airliners and contracting out for the United States Government. They have engineered various aircrafts ranging from airliners to space shuttles. The history is filled with vast amounts of success and always ends with Boeing coming out on top.They are a profitable company and it seems they will continue on to be profitable for years. Boeing is a gigantic company and has seemingly little competition, Boeing continue its legacy as the biggest and most widely aerospace…

    • 1638 Words
    • 7 Pages
    Improved Essays
  • Great Essays

    Airbus A380 Failure

    • 1519 Words
    • 7 Pages

    As the largest operator of the A380, Emirates is eager to develop Airbus A380neo aircraft, looking forward to more than 10% fuel efficiency. Tim Clark, the company 's chief executive, once the A380neo project was launched, Emirates could have "confirmed" orders of no less than 70. Obviously, Airbus consider launching A380neo project because of the pressure from Emirates, now it seems dilemma. In the second half of 2014, Airbus made a research for the A380neo project, they want to know if the additional sales profits can make up for the development process to pay the cost. In the meanwhile, they also analysis if they don’t make any change, how much number of A380 orders can be obtained in the future.…

    • 1519 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    The cabin classes include: • First Class (Available on domestic flights) • Business Class (Available on Boeing 787, 777-300/200, 767-300, 757 and 737) • Main Cabin (Available on Boeing 787, 777-300/200, 767-300, 757 and 737) Frequent Flyers Loyalty Program American Airlines takes good care of its frequent passengers and hence has launched the American's AAdvantage Frequent Flyer Programme in 1981 that was the first airline loyalty programme in the world. Passengers booking American Airlines tickets can earn AAdvantage loyalty benefits and earn miles towards their tier status every time they travel on eligible oneworld flights. These free points can be redeemed throughout the 1,000 destinations across the oneworld alliance. The AAdvantage comes with four tiers including: • AAdvantage Executive Platinum • AAdvantage Platinum • AAdvantage Gold • AAdvantage Baggage Allowance Policy American Airlines holds an extensive baggage policy for the comfort of the passengers. As part of the baggage policy, the airlines company restricts some 'Smart' bags can’t be taken inside the aircraft unless the battery can be…

    • 905 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The strategy for the company has helped make Southwest one of the biggest airlines. Southwest Airlines had a net income in 2013 of $754 million and total operating revenue were a record in 2013 of $17.7 billion. (Southwest Airlines Co., 2013). The company has worked on cost control and the stable fuel prices to achieve their annual goal for cost performance. Southwest Airlines had a total asset of $19,345 million in 2013 and Delta had $52,252 million.…

    • 1939 Words
    • 8 Pages
    Improved Essays
  • Great Essays

    The merger of AMR and US Airways Group created AAG Inc. as the world largest airlines. SEGMENTATION AAG Inc. operates with many subsidiaries and one of the main subsidiaries is American Airlines. AAG Inc. has two segments in terms of its passenger flights. Mainline serves international and regional serves domestic. In FY2015, the Mainline earned $29 billion, the regional earned $6.5 billion, another revenue is $4.8 billion and cargo earned $760 million.…

    • 1384 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Actus Rea

    • 1024 Words
    • 5 Pages

    No facts in this case show Ryan had any involvement in this case. The state cannot charge Zynal and Ryan because the state can’t prove Actus rea and Mens rea. State v Jason and Arooj Issue: Can the state char Jason and Arooj with burglary? Rule: Actus Rea: An act that is voluntary or there is an…

    • 1024 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Which is why Ocwen never gave us a straight answer as to who holds this responsibility or who holds our note. FCRA Our claim arising under the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s was not added to the amended complaint because as Pro Se litigants, we learn as we go. We learned of the violations after we amended our complaint. Our ignorance should not give Ocwen 's illegal business practices a pass.…

    • 1647 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    HELD: • The court held that in this case, no reasonable person could have concluded that the commercial constituted an offer for a Harrier jet. And also included that, whether an offer was made depends on the objective reasonableness of the supposed offeree’s belief that the advertisement or solicitation was intended to be an offer. • The court held that it was clear that no serious offer for a Harrier jet was made by Pepsico • The court noted that the commercial itself was highly unbelievable because the youth featured could barely be trusted with the keys to his parents’ car, much less the prize aircraft of the United States Marine Corps. • The court stated that the notion of traveling to school in a Harrier jet was exaggerated adolescent fantasy. Furthermore the actual cost of the jet exceeded $23 million and the offer was therefore…

    • 702 Words
    • 3 Pages
    Improved Essays