| Leonard v. Pepsico, Inc. | |
|---|---|
 | |
| 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 | 88 F. Supp. 2d 116 |
| Case history | |
| Subsequent actions | Affirmed, 210 F.3d 88 (2d Cir. 2000) (per curiam) |
| Court membership | |
| Judge sitting | Kimba Wood |
Leonard v. Pepsico, Inc., 88 F. Supp. 2d 116, (S.D.N.Y. 1999), aff'd 210 F.3d 88 (2d Cir. 2000), more widely known as the Pepsi Points case, is an American contract law case regarding offer and acceptance. The case was brought in the United States District Court for the Southern District of New York in 1999; its judgment was written by Kimba Wood.
In 1996, PepsiCo began a promotional loyalty program in which customers could earn Pepsi Points which could be traded for physical items. A television commercial for the loyalty program displayed the commercial's protagonist flying to school in a McDonnell Douglas AV-8B Harrier II vertical take off jet aircraft, valued at $37.4 million at the time, which could be redeemed for 7,000,000 Pepsi Points. The plaintiff, John Leonard, discovered these could be directly purchased from Pepsi at 10ยข per point. Leonard delivered a check for $700,008.50 to PepsiCo, attempting to purchase the jet. PepsiCo initially refuted Leonard's offer, citing the humorous nature of the offer in the advertisement. Leonard then sued PepsiCo, Inc. in an effort to enforce the offer and acceptance perceived by Leonard to be made in the advertisement. In her judgment, Wood sided with PepsiCo, noting the frivolous and improbable nature of landing a fighter jet in a school zone that was portrayed by the protagonist. PepsiCo would re-release the advertisement, valuing the jet at 700,000,000 Pepsi Points.