Question

In 1996, Pepsi introduced their "Pepsi Points" promotion, which allowed people to collect points from pop bottles to earn merchandise. One television advertisement featuring items that could be purchased with Pepsi Points humorously ended with a student landing at school in a Harrier jet, with the line "7,000,000 Pepsi Points" appearing on the screen. Because additional Pepsi points could be purchased to make up for point shortfalls, one Pepsi customer presented Pepsi with 15 Pepsi Points and a cheque for $700,008.50 (to cover the excess points and shipping and handling) for the jet. Pepsi refused to present him with a Harrier jet, and he sued. Did the advertisement constitute an offer?

Answer 1

The advertisement does not constitute an offer because it lacks:

• Serious intention.
• Clear and reasonable defined terms.
• Communication to the recipient.

An offer is an economic term that refers to that property that is willing to be sold for a price. There are also other types of offers that are related to coupons or discounts for consumers to obtain a reward for their loyalty to a brand.

An offer must have three basic components to be considered true, these must be:

• Serious intention: This refers to the fact that whoever offers must make the offer in a formal, real and true way

• Clear and reasonable defined terms: This refers to the fact that whoever offers must establish the terms and conditions clearly and completely for consumers to access them.

• Communication to the recipient: This refers to the fact that whoever offers must communicate to the consumer through advertising or official communications the information necessary to complete a transaction.

Based on the above, it can be inferred that Pepsi did not make a true offer with its ad because the part in which a young man appears on a Harrier airplane had a humorous tone, this does not show Pepsi's intention to offer this service.

Learn more about an marketing in: brainly.com/question/10789897