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Use of advertisements

Hello, please help answer the problem below:

problem #5. Explain the action that management can take to apply the liability limiting rules to the situation.

Also, if it is possible to quickly check work and see if i answered correctly.Workplace Application Report Format

1. Module 3 Topic / Legal Issue:
Topic: Contracts and Agreements
Issue: What can Disney do to persuade tourists and local guests to visit their theme parks by offering them a low rate without a full commitment or agreement?

2. Why does this topic apply to your workplace? Disney wants to find ways to lure customers to their magical kingdom by offering certain incentives such as free merchandise and cheap ticket prices. However, it knows it does not want to give everyone a cheap price for admission because it may not be profitable.

3. IRAC Analysis
Issue: How can Disney lure people to their theme park with great offers without abiding by contracts or agreements?

Rule - Advertisements, Catalogues, Price List and Circulars: These are not treated as offers to contract but as invitations to negotiate. This is a great way to solicit people to go to Disneyland. (Cite: West Law p. 213.)

Rule - Expressions of Opinion: Disney may perhaps announce that they have the best rides, food and amusement park in the world. However, this is an expression of opinion, not an offer. Those who think Disneyland is boring can not sue Disney because the firm does not evidence an intention to enter into a biding contract. (Cite: West Law p. 212.)
Application: Disney can advertise on fliers, billboards and on TV listing a price of $25 for admission with small letters in quotations "prices subject to change and are limited."

Conclusion: Disney can advertise and present prices which may be misleading, however these are not offers to a contract but an invitation to negotiate.

4. Appropriate management response to the situation to limit legal liability.
Disney needs to make sure that that their advertisements have to seem like and treated like an invitation to negotiate. In order to limit legal liability, the firm can hire a lawyer to make sure that their advertisements do not see apparent that it promises so definite in character.

5. Preventative measures that management can take to limit liability in the future. Give citations for legal rules that may limit liability. Explain the action that management can take to apply the liability limiting rules to the situation.

A seller's price list is not an offer to sell at that price; it merely invites the buyer to offer to buy at that price. Sellers usually put "prices subject to change" to protect themselves from potential law suits (Cite: West Law p. 213.) A request or invitation to negotiate is not an offer. It only express a willingness to discuss the possibility of entering into a contract. (Cite: West Law p. 212.)

To limit liability for Disney's use of advertisements:
a.
b.
c.

Attachments

Solution Preview

Workplace Application Report Format

1. Module 3 Topic / Legal Issue:
Topic: Contracts and Agreements
Issue: What can Disney do to persuade tourists and local guests to visit their theme parks by offering them a low rate without a full commitment or agreement?

2. Why does this topic apply to your workplace? Disney wants to find ways to lure customers to their magical kingdom by offering certain incentives such as free merchandise and cheap ticket prices. However, it knows it does not want to give everyone a cheap price for admission because it may not be profitable.

3. IRAC Analysis
Issue: How can Disney lure people to their theme park with great offers without abiding by contracts or agreements?

Rule - Advertisements, Catalogues, Price List and Circulars: These are not treated as offers to contract but as invitations to negotiate. This is a great way to solicit people to go to Disneyland. (Cite: West Law p. 213.)

Rule - Expressions of Opinion: Disney may perhaps announce that they have the best rides, food and amusement park in the world. However, this is an expression of opinion, not an offer. Those who think Disneyland is boring can not sue Disney because the firm does not evidence an intention to enter into a biding contract. (Cite: West Law p. 212.)
Application: Disney can ...

Solution Summary

This explains the ways of limiting liability with respect to advertisements.

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