In one television ad, Pepsi Co pictured a Harrier jet as a satirical spoof on the prizes available under the campaign The jet was offered in the ad for 7 million beverage points Harrier jets are made only for the Marine Corps and are not sold in the open market They cost $338 million each and can be produced at a rate of only one dozen at a time
John Leonard, a 21-year-old business student, called Pepsi Co and was told he would need to drink 168 million cans of Pepsi in order to obtain the required points He was also told that he had the option of buying Pepsi Co points for 10 cents each Leonard developed a pool of investors (Pepsi drinkers) and delivered 15 PepsiCo points and a check for $700,00850 for the remaining 6,999,985 points plus shipping and handling
PepsiCo refused to provide Leonard with a Harrier jet because it said the ad was not an offer but a joke Leonard filed sue but PepsiCo had already filed a pre-emptive suit asking that Leonard’s suit be dismissed and declared frivolous and that PepsiCo should be reimbursed for its legal expenses
(1) Define the elements of a contract?
(2) What are the elements of an offer and an acceptance?
(3) Did PepsiCo make an offer?
(4) Did Leonard accept?
(5) Was there a contract? Why or why not Discuss