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Read the Chapter 9 Case Opener, The Problematic Promotion. Respond to the questions at the end of the case. You will have to read the chapter and do some outside research to properly respond to the questions. Do not use the Case wrap up to answer questions.
Each question should have a response of at least 250 words. You will need to show references (and in-text citations) in APA format.
Complete this assignment in APA format, save as a Word document and upload for grading.
The Problematic Promotion
Pepsi had a promotion whereby consumers were encouraged to collect Pepsi points by consuming Pepsi products. They could then redeem the points for merchandise. If they did not have quite enough points for the prize they wanted, they could buy the needed additional points for 10 cents each; however, at least 15 original Pepsi points had to accompany each order.
At the climax of an early commercial for the promotion, three young boys are sitting in front of a high school building, one reading his Pepsi Stuff catalog while the others drink Pepsi, all gazing in awe at an object rushing overhead as the military march in the background builds to a crescendo. A Harrier jet swings into view and lands by the side of the school building, next to a bicycle rack. Several students run for cover, and the velocity of the wind strips one hapless faculty member down to his underwear. While the faculty member is being deprived of his dignity, the voice-over announces: “Now the more Pepsi you drink, the more great stuff you’re gonna get.”
A teenager opens the cockpit of the fighter and can be seen, without a helmet, holding a Pepsi. He exclaims, “Sure beats the bus,” and chortles. The military drumroll sounds a final time, as the following words appear: “Harrier Fighter 7,000,000 Pepsi Points.” A few seconds later, the following appears in more stylized scriipt: “Drink Pepsi—Get Stuff.”
John Leonard decided to accept Pepsi’s offer of the Harrier fighter jet for 7 million Pepsi points. He quickly realized that it would be easier to raise the money to buy points than to collect the 7 million points. In early March 1996, he filled out an order form requesting the jet and submitted it to Pepsi, along with 15 Pepsi points and a check for $700,000.
In response, Pepsi sent him a letter saying, “The item that you have requested is not part of the Pepsi Stuff collection. It is not included in the catalog or on the order form, and only catalog merchandise can be redeemed under this program.” John then sued for breach of contract.
1.Did Pepsi offer to sell the Harrier jet for 7 million points?
2.Did Leonard’s submission of the order form constitute an acceptance?
3.Was the alleged contract in this case a bilateral or unilateral contract?