What conjugates an advertisement to a legally binding contract? This very question is the
foundation to Leonard vs. Pepsi. In 1996, Pepsico released an advertisement for a new
promotional points system, Pepsi Stuff, that allowed consumers receive rewards for their loyalty.
In this advertisement, it is portrayed in the last segment of video, in an attempt to entice viewers,
that a Harrier Fighter Jet is available for 7,000,000 points. Leonard took this advertisement
seriously, with intent to undermine the purpose of the commercial while taking advantage due
the lack of disclaimers. There are laws in place that prevent contracts from being formed through
advertisements such as this. Contract law states, in The Restatement (Second) of Contracts,
“§26. PRELIMINARY NEGOTIATIONS: willingness to enter into a bargain is not an offer if
the person to whom it is addressed knows or has reason to know that the person making it does
not intend to conclude a bargain until he has made a further manifestation of assent. Translated,