Leonard v. Pepsico, Inc. facts for kids
Quick facts for kids Leonard v. Pepsico, Inc. |
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| Court | United States District Court for the Southern District of New York |
| Full case name | John D.R. Leonard v. Pepsico, Inc. |
| Decided | August 5, 1999 |
| Docket nos. | 96-cv-5320; 96-cv-9069 |
| Citation(s) | 88 F. Supp. 2d 116 |
| Case history | |
| Subsequent action(s) | Affirmed, 210 F.3d 88 (2d Cir. 2000) (per curiam) |
| Court membership | |
| Judge(s) sitting | Kimba Wood |
Leonard v. Pepsico, Inc. is a famous legal case from 1999. It's often called the Pepsi Points Case. The case was about whether a TV commercial for PepsiCo was a serious offer.
A man named John Leonard believed PepsiCo was offering a military jet. He thought he could get it by collecting 7,000,000 Pepsi Points. At the time, a jet like that was worth about $23 million. John Leonard tried to "buy" the points for $700,000. He then tried to get the jet from PepsiCo. PepsiCo said the commercial was just a joke.
The Lawsuit Begins
John Leonard took PepsiCo to court. He claimed that PepsiCo broke a promise (this is called a breach of contract). He also said they tried to trick him (this is called fraud).
The case started in Florida. But it was later moved to a court in New York. PepsiCo asked the judge to end the case early. They said there was no real contract. John Leonard argued that a jury of "Pepsi Generation" members should decide. He felt they would understand the ad was a real offer.
What the Commercial Showed
The court looked closely at the Pepsi commercial. Here's what happened in the ad:
- Three young boys are sitting outside a high school.
- One boy is looking at a Pepsi Stuff Catalog.
- Suddenly, a military jet flies overhead.
- The jet lands next to the school's bike rack.
- Students run for cover.
- The wind from the jet blows a teacher's clothes off!
- A voice says, "Now the more Pepsi you drink, the more great stuff you're gonna get."
Then, a teenager opens the jet's cockpit. He is holding a Pepsi and looks very happy. He says, "Sure beats the bus!" The commercial ends with the words: "HARRIER FIGHTER 7,000,000 PEPSI POINTS." Then it says: "Drink Pepsi—Get Stuff."
John Leonard didn't buy 7,000,000 Pepsi products. Instead, he sent a check for $700,008.50. This was allowed by the contest rules. He had 15 points already. He paid 10 cents for each of the remaining points. He also paid a small fee for shipping and handling.
The Court's Decision
Judge Kimba Wood was the judge in this case. She decided against John Leonard. Here are some of her reasons:
- The judge said the ad was not a real "offer." An offer is a serious promise that can create a contract.
- Even if it was an offer, no normal person would think it was serious. A jet worth $23 million for $700,000 was clearly a joke. This is called "puffery" in advertising. It means exaggerated claims that aren't meant to be taken literally.
- For such a valuable deal, there needed to be a written agreement. This is part of a law called the Statute of Frauds. Since there was no written agreement, no contract was formed.
The court explained why the commercial was "clearly a joke":
- The teenager in the ad looked too young to fly a fighter jet. He seemed like he could barely drive a car.
- The teenager's comment, "Sure beats the bus," showed he wasn't serious. Flying a dangerous fighter jet to school is not a normal way to get there.
- No school would allow a jet to land on its property. It would cause too much trouble.
The court also pointed out that a Harrier Jet is a military plane. It is used for fighting. Showing it as a way to get to school was obviously not serious.
John Leonard appealed the decision. This means he asked a higher court to review the case. But the higher court agreed with Judge Wood's decision.
What Happened Next
PepsiCo never cashed John Leonard's check. So, there was no case for fraud.
PepsiCo kept showing the commercial. But they changed it. They made the Harrier Jet cost 700 million Pepsi Points. They also added a clear "Just Kidding" message.
The White House also said that military jets like the Harrier would not be sold to regular people. If they were, they would have to be "demilitarized." This means they would be changed so they couldn't fly or take off vertically anymore.
