Dreamworld Airlines Contract Case Study

747 Words 3 Pages
Due to improper online pricing, Dreamworld Airlines is currently under heavy scrutiny on whether or not a contract was established between the customer and the company. Many of the customers who purchased a ticket for $25 have expressed extreme displeasure with Dreamworld Airlines, and have a legitimate reason for expressing such displeasure. The issue of a contract offer and acceptance has been presented heavily. By definition, a contract is a legally enforceable promise or set of promises (Mallor, 321). In order for a contract to be legitimate it must contain 4 elements: an offer and acceptance, consideration, capacity to contract and the contract must be legal. During the two hours that the ad was posted online the offer presented by Dreamworld …show more content…
While Dreamworld Airlines does have terms of service specifically stating that they are not liable for any wrong information on the site, “Dreamworld Airlines makes no warranties concerning the information on this site, and specifically disclaims any liability for injury or damages that result from any action taken by any person in reliance on the information posted on this site.” These terms would be extremely beneficial if they were located in a very obvious and visible location. However, the problem with these terms of service is the location in which they were placed. It says specifically that a term of use link was only placed at the bottom of the homepage, not the booking page. Also, at no point during that process on the homepage were any terms of service reasonably visible, as one would have to scroll all the way to the very bottom of the page to find them in small font. As a result of this, no reasonable customer would have known to check with the company on possible mispricing, nor would they go out of their way to look for, and read all of the terms. Therefore, Dreamworld Airlines would be held responsible and would have to honor the originally offered prices. To ensure that this does not happen again, the terms of use need to prevalent, and very visible on every page of the website. Furthermore, there needs to be an agreement …show more content…
This becomes a difficult situation due to the fact that minors can opt out of a contract at any time for any reason. To ensure that they do not opt out a parent or legal guardian would have to assume responsibility for them. One way to do that would be to do something similar to what Apple does. There needs to be a terms of agreement the pops up on the booking page, stating that you acknowledge that you must be 18 years of age or older to purchase a ticket. If one is under 18, a legal guardians signature must be presented. Another possible solution would be to send an authorization code to a parents email, and have them confirm the code when they pay.
Going forward, DWA is going to need to reestablish customer trust and preference. The first step in doing so would be to allow the 547 customers, who purchased the ticket, to fly for $25. DWA should also implement the parent verification code to make sure that no minor opts out of a contract. Finally, there should also be a review process when posting things to the company website. This goes for accurate information, as well as making sure the policies and terms of use are clearly visible for everyone to

Related Documents