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Valid Contract and Privacy of Drug Testing Information

PART A

In 1999, a Seattle man took a popular soft-drink company seriously when one of its commercials made an offer of a Harrier jet, the famous high-tech jump jet used by the U.S. Marines. In a TV commercial that aired in 1995, the company jokingly included the Harrier as one of the prizes that could be received with a mere 7 million company points. Although that sounds like a lot of points to get from drinking the soft drink company's products (roughly 190 drinks a day for 100 years), the company also allowed customers to purchase points for 10 cents each.

The man did the math and discovered that the cost of the 7 million points needed for the jet was $700,000. He then put together a business plan, raised the $700,000 from friends and family, and submitted 15 points, the check, and an official order form along with a demand for the Harrier jet.

The company wrote back, stating that the Harrier jet in the commercial was simply used to create a humorous and entertaining advertisement. They apologized for any misunderstanding or confusion people may have experienced and enclosed some free product coupons.

The free coupons did not satisfy the man, who then took the soft drink company to court. Finally, a federal judge for the Southern District of New York held that the company was only joking when it implied in its ad that it was giving away fighter jets. The judge noted that because the jets sell for approximately $23 million, no one could have concluded that the commercial actually offered consumers a Harrier jet. Instead, this was a classic example of a deal that was too good to be true.

ANSWER THE FOLLOWING QUESTIONS:

What are the four elements of a valid contract?
What is the objective theory of contracts?
How does the objective theory of contracts apply to this case?
In your own words, why do you think the court held that there was not a valid agreement here?
Are advertisements generally considered offers? Explain.
How does this case differ from a reward situation in which a unilateral contract is formed upon completion of the requested act?

PART B

Consider the following statement:

Drug use is information that is rightfully private and only in exceptional cases can an employer claim a right to know about such use. Determine your stance on the issue of drug testing and employee drug use; write how you feel about the issue.

Make sure you answer the following questions in your respond.

Do employers always have a right to know about employee drug use?
What if the drug use has no effect on employee performance?
What if the drug use constitutes a serious health risk?
How would you (as a manager) address the issue of employee drug use?

Solution Preview

What are the four elements of a valid contract?

The four elements of a valid contract are as follows. One, two separate parties have to enter into the actual agreement by means of an individual and a company or vice versa. Two, both of these parties agree to any terms and conditions that are prominent within the contract itself. They need to occur within the legal age limit and fully understand what it means. Three, these parties are putting it into consideration, such as a product or service. Four, legal activities are the main reason why the contract is created. Anything that is illegal within the contract is not considered legal and binding for any company that takes part in it. Sometimes it is best to have a lawyer help to put a contract together so that non-market issues do not arise when both parties come together to discuss business matters.

Hubpages. (2011). Essentials of a valid contract. Retrieved on January 17, 2011, http://hubpages.com/hub/Essentials-of-a-valid-Contract.

Maughan, Jaceson. (2011). What are the four elements of a valid contract? Retrieved on January 17, 2011, http://www.life123.com/career-money/business-law/contracts/what-are-the-four-elements-of-a-valid-contract.shtml.

What is the objective theory of contracts?

The objective theory of contracts is as follows. This is a legal concept that is considered a binding agreement between two and possible more parties by means of a person would judge from the outside that a type of offer was made or also accepted. This notion is of the intention that the parties did advocate before the 19th century theory of contract as coming across as too hazy. In essence, this demonstrates that people are coming together for one purpose and that is to sign a contract. The option is to accept it or not, but this is subjective because it is based on one person's worldview and whether or not they agree with it.

Legal Dictionary. (2011). Objective theory of contracts. Retrieved on January 17, 2011, http://legal-dictionary.thefreedictionary.com/Objective+Theory+of+Contract.

How does the objective theory of contracts apply to this case?

The objective theory of contracts applies in this case in a number of ways. The advertisement appeared as a joke. This organization compiled all the necessary funding needed to make this occur. However, the Harrier jet firm was not ...

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