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John D.R. Leonard v. Pepsico, Inc.
Citations: 210 F.3d 88; 41 U.C.C. Rep. Serv. 2d (West) 779; 2000 U.S. App. LEXIS 6855; 2000 WL 381742Docket: 99-9032
Court: Court of Appeals for the Second Circuit; April 17, 2000; Federal Appellate Court
Pepsico, Inc. ran a promotional campaign in 1995, where consumers could earn merchandise by collecting points from purchasing Pepsi Cola. A television advertisement featured a teenager showcasing various rewards and concluded with the teenager arriving at school in a Harrier Jet, priced at 7 million Pepsi points. John D.R. Leonard, the plaintiff-appellant, claimed that the ad constituted a legitimate offer, which he accepted by submitting an equivalent of 7 million points, thus alleging a breach of contract by Pepsico for failing to deliver the jet. Pepsico countered that the advertisement was intended as a humorous exaggeration, referring to the promotional catalog that did not list a Harrier Jet as a redeemable item. The company argued that no reasonable person would interpret the commercial as an actual offer for the fighter jet. The United States District Court for the Southern District of New York, presided over by Judge Wood, granted summary judgment in favor of Pepsico. The court found that (1) the commercial did not constitute an offer of goods, (2) a reasonable person would not conclude that the ad offered a Harrier Jet, and (3) any alleged contract would not meet the requirements of the New York statute of frauds. The Court of Appeals affirmed the lower court's decision, aligning with the reasoning articulated in Judge Wood’s opinion from the district court.