Case: Parties


Leonard v. Pepsico, Inc. (2000) 2nd circuit Plaintiff - Leonard Defendant - Pepsico Def moves for summary judgment, and is granted.

Procedural History:

Facts: Plaintiff brought this action, among other things, specific performance of an alleged offer of a Harrier jet, featured in a TV commercial for defendant's "Pepsi Stuff" promotion. Pepsi encourages customers to collect pepsi points, and redeem these points for Pepsi merchandise. In one of the commercials, it allegedly offers a Harrier fighter jet for 7 million points. This was not in the Pepsi catalog for merchandise to redeem your points for, but this did not deter the plaintiff. You could also buy pepsi points at 10cents/point, so plaintiff raised $700,000 and submitted to redeem the harrier jet. Pepsi returned the check and informed plaintiff that the jet was not for sale, and was only intended as entertainment. Issue: Was there a contract formed when Pepsi aired the commercial which "offered" a harrier jet for 7million points, and a consumer accepted it by submitting a request with the appropriate payment/points, although the commercial was intended to be entertainment, and not a real offer? Holding: Summary judgment granted for defendant.

Reasoning: Generally, advertisements do not constitute an offer; it is merely a request for an offer. Unless the order form and payment are processed, there is no contract. In this case, by the plaintiff submitting the order form and payment, this constituted the offer, but Pepsi did not accept; instead they returned this order form and payment. There would be no enforceable contract until defendant accepted the Order form and cashed the check. This is true unless the ad is definite, explicit, and leaves nothing open for negotiation. This is not the case here. It was not definite because it reserved the details of the offer to the catalog. Also, the ad informed consumers that they could accumulate points, and refer to the catalog on how to redeem them. A reasonable person would have understood the ad as pure entertainment and would not have taken it seriously.