FACTS: John Leonard saw an ad for a PepsiCo promotion program that involved saving Pepsi Points in order to obtain merchandise such as hats, jackets and other personal items. The ad showed a young man getting a Harrier Jet with Pepsi Points and then taking the jet to school. The screen blinked the number of Pepsi points for items shown and when the jet appeared, the screen blinked 7,000,000 points.

Leonard saved the Pepsi Points and the cash equivalent and tried to redeem them for the jet and Pepsi refused. Leonard filed suit alleging that Pepsi’s ad was an offer which he had accepted. Pepsi said the ad was not an offer.

DECISIONS BELOW: The court granted summary judgment to Pepsi.

ISSUE ON APPEAL: Did Pepsi’s ad constitute an offer?

DECISION: No. The ad was a joke. There were rules and instructions that went along with the ad. And the contract would have had to have been in writing and it was not.

1.When does the court think an offer was made?

2.Why is whether the ad is funny an important issue?

3.Does the commercial satisfy the statute of frauds? Explain.

4.Will Mr. Leonard get his Harrier jet? Why or why not?

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