Case Study: "Make a Deal"
Pretend you are on a business game show called "Make a Deal," where businesspeople have an opportunity to make a deal on the spot with a surprise guest. After successfully answering a series of business law questions, you make it to the final round.
The host, Melody McFry, brings out the surprise guest: a 93-year-old grandmother of 14! The audience applauds wildly (audiences love grandmothers). The sweet, little old lady makes you an offer: a pair of plastic beads for $5,000.
You really don't want to make a trade (come on, a pair of beads?) but the second you say, "I don't know
", the audience boos and begins chanting "Make a Deal! Make a Deal!" You cave in to peer pressure and make the deal.
After the show ends and the lights die down, you realize you made a terrible mistake. You have enough money to pay her, but you've been planning for months to use that money to expand your web site, www.IHateBeads.com. What do you do?
Are you in a valid contract? Why or why not?
Let's assume the beads are worth around $50. Would it make a legal difference if the grandmother offered to trade you $500 for the beads? What about $50?
Would it make a difference if your web site is named www.ILoveBeads.com?
What if all contestants received $5000 for making it to the final round?
How could you have legally rejected the offer without saying the word "no"?