Benner imports Inc, an automobile dealership, placed an advertisemet in the chicago sun times to sell a station wagon. The advertisement displayed a price that was $700 lower than the dealership had indicated in the advertising copy sent to the newspaper. A customer wanted to buy the car at the advertised price. The company refused to sell. The customer argued that the advertisement was and offer that he accepted, creating a binding contract.
1. Do you agree with the customer or the auto dealership. Why?
2. Explain the legal principles that apply to this case and it's likely outcome.
3. What implications could this case have on you personally or on others today?
I've been trying to figure this out for months and I'm completely lost. Thank you for your help.
1. In this case, I would agree with the customer. The advertisement placed by Benner Imports Inc in the Chicago Sun Times can be considered an offer, and the customer accepted it by expressing their intent to buy the car at the advertised price. This acceptance should create a binding contract between the parties.
2. The legal principle that applies to this case is the concept of offer and acceptance. An offer is a statement indicating a willingness to enter into a contract on specific terms. Acceptance is the expression of agreement to the terms of the offer. In this situation, the customer accepted the offer by expressing their desire to purchase the car at the advertised price. Though there was a discrepancy between the advertised price and the copy sent to the newspaper, it is generally understood that advertisers are bound by the terms of their advertisements.
The likely outcome would be that the court would enforce the contract and order Benner Imports Inc to sell the car to the customer at the advertised price. This is because advertisements are typically considered offers, and the customer accepted it to create a binding contract.
3. This case has implications both for individuals and businesses today. For individuals, it reinforces the idea that advertisements can be treated as offers and, if accepted, can create a binding agreement. It also emphasizes the importance of reading and understanding the terms of an advertisement before accepting it. For businesses, this case serves as a reminder to ensure accuracy in advertising and to honor the terms offered in advertisements. Advertisements should align with the seller's intentions to avoid potential legal issues and maintain trust with customers.
1. In this case, I would agree with the auto dealership.
2. The legal principles that apply to this case are generally related to contract law. Typically, an advertisement is considered an invitation to make an offer, rather than a binding offer itself. This means that the customer, by responding to the advertisement, is making an offer to purchase the station wagon at the advertised price. However, the dealership can choose to accept or reject that offer. In this scenario, the advertisement displayed a lower price than intended, which could be considered a mistake. Mistakes in advertisements are usually not binding on the seller, as they can be seen as typographical or clerical errors. Therefore, the likely outcome would be that the customer's argument of a binding contract would not hold, and the dealership would be within their rights to refuse to sell at the advertised price.
3. The implications of this case could be that individuals need to be aware that advertisements are typically considered invitations to make an offer, rather than binding offers themselves. It is important to carefully read the terms and conditions of any advertisement and make sure to clarify any discrepancies or ambiguities before making a purchase. Additionally, businesses also need to be cautious when advertising products or services to avoid any misleading or incorrect information, as it could result in legal disputes or damage to their reputation.