No Plag need by the 21th of August, business and finance homework help

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Business Finance

Description

In 1999, a Seattle man took a popular soft-drink company seriously when one of its commercials made an offer of a Harrier jet, the famous high-tech jump jet used by the U.S. Marines. In a television commercial that aired in 1995, the company jokingly included the Harrier as one of the prizes that could be received with a mere 7 million company points. Although that sounds like a lot of points to get from drinking the soft drink company's products (roughly 190 drinks a day for 100 years), the company also allowed customers to purchase points for 10 cents each.

The man did the math and discovered that the cost of the 7 million points needed for the jet was $700,000. He then put together a business plan, raised the $700,000 from friends and family, and submitted 15 points, the check, and an official order form with a demand for the Harrier jet.

The company wrote back, stating that the Harrier jet in the commercial was simply used to create a humorous and entertaining advertisement. They apologized for any misunderstanding or confusion people may have experienced and enclosed some free product coupons.

The free coupons did not satisfy the man, who then took the soft drink company to court. Finally, a federal judge for the Southern District of New York held that the company was only joking when it implied in its ad that it was giving away fighter jets. The judge noted that because the jets sell for approximately $23 million, no one could have concluded that the commercial actually offered consumers a Harrier jet. Instead, this was a classic example of a deal that was too good to be true.

Write a paper of 4–6 body pages that answers the following questions, including an in-depth explanation of the supporting rationale:

  • What are the key legal factors present in the scenario?
  • What are the 4 elements of a valid contract? How do they relate to the scenario in question?
  • What is the objective theory of contracts?
  • How does the objective theory of contracts apply to this case?
  • In your own words but based on research and analysis of relevant legal concepts and cases, why do you think the court held that there was not a valid agreement in this scenario? Provide support for your position.
  • Are advertisements generally considered offers? Explain.
  • How does this case differ from a reward situation in which a unilateral contract is formed upon completion of the requested act?
  • What recommendations (at least 2) would you make for a company considering an aggressive marketing campaign with giveaways of high value items? Explain the rationale behind

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Explanation & Answer

Hi there,Kindly see the attached file for a complete response to your question. Feel free to let me know in case something requires my attention.Regards,Talia

Running head: LEGAL CONTRACTS

1

Legal Contracts
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Date

2

LEGAL CONTRACTS
The Key Legal Factors Present in the Scenario
The major legal factor in this case is that of a contract. The question is whether the
contract is valid or not. The soft drink company gives a promise to reward a high tech jet to

whoever would be able to reach the mere 7 billion company points. The Seattle man managed
to attain the points; this put the company on a weighing balance whether it will be able to
meet its promise. Therefore, the main issue in this case is whether the soft drink company and
its big reward constituted a valid contract or not.
1. Elements of a Valid Contract
For a contract to be termed as valid it must possess basic elements. In this regard it
means that any claim concerning the offers issued by a certain company during the time of
advertising should be valid and legal. This means that the company making such
advertisements must stand a chance to prove those claims when need arises (Craig Hong &
Brisbane, 2015). From the case of the soft-drink company, the following basic elements have
been considered making it legally binding. The elements include:
a. Offer
In this case the element of offer and acceptance is evidence. This means that the
contract is legally enforceable and valid...


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