✅ (Solved): The Neti-pot Company ran a magazine ad that contained the following message: "$100 reward will be paid by Neti-pot Co. to any person who suffers from hayfever after having used the Neti-pot three times daily for 4 weeks, according to the printed instructions supplied with the pot. We have deposited $1000 with First National Union Bank to show how much we believe in the healing powers of the Neti-pot." Sheldon used the Neti-pot every day for 4 weeks, but still suffered from seasonal hayfever allergies. Will he be able to collect $100 from the Neti-Pot Company? (a) No, because advertisement are not generally offers. (b) No, because the advertisements are an invitation to bid. (c) No, because no reasonable person would have believed Neti-pot's ad to be an offer. (d) Yes, because Sheldon accepted the offer contained in the Neti-pot ad by performance.

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Economics

The Neti-pot Company ran a magazine ad that contained the following message:

“$100 reward will be paid by Neti-pot Co. to any person who suffers from hayfever after having used the Neti-pot three times daily for 4 weeks, according to the printed instructions supplied with the pot. We have deposited $1000 with First National Union Bank to show how much we believe in the healing powers of the Neti-pot.”

Sheldon used the Neti-pot every day for 4 weeks, but still suffered from seasonal hayfever allergies. Will he be able to collect $100 from the Neti-Pot Company?

(a) No, because advertisement are not generally offers.

(b) No, because the advertisements are an invitation to bid.

(d) Yes, because Sheldon accepted the offer contained in the Neti-pot ad by performance.

✅ Answers (1)

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Private answer

(a) No, because advertisement are not generally offers.

Explanation:

First, for a contract to be valid and enforceable, the two parties must agree on terms without duress and should involve exchange of consideration. Generally, courts do not consider advertisements as offers, rather, they are considered an invitation to begin negotiations (treat). An advertiser can only be sued for making incorrect statements in advertisement. Advertisers should not use deceptive measures to entice buyers. In the above scenario, Neti-pot made an invitation to treat when they made the statement on their advertisements, but there was no valid offer or acceptance when Sheldon uses the product irrespective of whether hayfever was as a result of using Neti-Pot or allergy.

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Answered on June 25, 2020 7:32 pm

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