An ad for Spencer's Appliance read as follows: Come one, come ...

[pane00]

An ad for Spencer's Appliance read as follows: Come one, come all, to Spencer's semi-annual storewide sale. Doors open at 7 AM the day after Thanksgiving. The first 50 customers receive 200 off any appliance selling for 500 or more. Joan Dreisden arrived at the store at 6 AM and was number 22 in line. Joan wished to purchase an HD TV for 1300. Spencer's refused to give her the 200 off the price. Just an ad, was the manager's explanation. Is the manager correct?

Question 2

To bind the third party, restrictions on an agent's authority must be:
 A) known to the third party.
 B) in contract form between the agent and principal.
 C) in writing.
 D) None of the above

[tuwy]

Answer to Question 1

Drawing on the dicta in the Pepsi case, students should explain that an ad is not generally an offer except when there is a definitive act required, such as being one of the first 50 customers. In this case, Joan had complied with the condition and Spencer's had to make good. In short, the ad was more than an invitation for an offer. It trotted into unilateral offer territory. Also, Spencer's should be concerned about bait and switch.

Answer to Question 2

C

[pane00]

Thank you

[tuwy]

Happy to help you