Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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Chapter 5, Problem 2CP
Summary Introduction
To discuss: Whether Company B’s opinion is correct or not.
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Local camping supply store, Happy Campers, has been sued by an angry customer for breaching ACL s 54. According to the customer, Happy Campers sold her a pair of hiking boots that broke soon after she started wearing them. According to Happy Campers, the customer was told that the shoes were discounted because they were defective. Required: You have been asked to interpret ACL s 54, and to help Happy Campers understand if it has a valid defence.
Bart Inc. developed a new medical rub called “NoPain Muscular Rub” that can be used in the event of muscular back pains. Bart Inc. via an online advertisement, stated that they are willing to pay $5,000 to anyone who used their muscle rub “Nopain” for one week and still suffers with back pains thereafter. Bill who suffer from back pains, saw the online advertisement and decided to purchase “NoPain Muscular Rub”. He used it for a full week, but nevertheless still suffered from back pains. Based on the fact that the muscular rub “Nopain” did not relieve his back pains, he sued Bart Inc. for the monies that were promised. However, Bart Inc. argued that the advertisement was not an offer, but an invitation to invite offers. They further argued that at no point in time did Bill make an offer and as such, they are not bound to pay him any monies, since the parties did not create any binding agreement.
Advised Bill on his legal options using the IRAC model
Bart Inc. developed a new medical rub called “NoPain Muscular Rub” that can be used in the event of muscular back pains. Bart Inc. via an online advertisement, stated that they are willing to pay $5,000 to anyone who used their muscle rub “Nopain” for one week and still suffers with back pains thereafter.
Bill who suffer from back pains, saw the online advertisement and decided to purchase “NoPain Muscular Rub”. He used it for a full week, but nevertheless still suffered from back pains. Based on the fact that the muscular rub “Nopain” did not relieve his back pains, he sued Bart Inc. for the monies that were promised.
However, Bart Inc. argued that the advertisement was not an offer, but an invitation to invite offers. They further argued that at no point in time did Bill make an offer and as such, they are not bound to pay him any monies, since the parties did not create any binding agreement.
Advised Bill on his legal options using IRAC
Chapter 5 Solutions
Smith and Roberson’s Business Law
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