On page 248 (438) of your textbook under "Cyberlaw in Action", the case of the $24.98...

On page 248 (438) of your textbook under "Cyberlaw in Action", the case of the $24.98 tickets to Paris is discussed. Make an argument for either United Airlines in declining to honor the price in the e-ad or a counter argument for the consumer that the price should be honored. You can put yourself in the position of a consumer who bought the ticket, or in the position of United Airlines. Be sure to use legal theories from the textbook. Make sure you respond to the question: "Is it ethical for a customer to insist on a contract that is based on a mistaken price?" and "Is it ethical for an e-tailer to refuse to honor a contract that is based on a mistaken price?" Even though I usually request that you use an objective standard and not insert your personal opinion, in this case you should state what you think is right or wrong from an ethical standpoint, not necessarily what the outcome would be under the law.

Expert Solution

I will make an argument for United Airlines in declining to honor the price. The basis of the argument is the presence of an intention to create legal relations. An integral part of any contract is the presence of an intention to create legal relations. In this case there was a unilateral mistake by United Airlines and as the error had caused the ticket to be heavily discounted United Airlines had no intention to form a contract at $24.98.

No, it is not ethical for a customer to insist on a contract that is based on a mistaken price. This is because the price is a result of a unilateral mistake and hence a proper contract was not intended to be formed. From an ethical point of view a customer should appreciate the situation and not try and exploit the situation for his own benefit at the expense of the e-tailer.

Yes, it is ethical for an e-tailer to refuse to honor a contract that is based on a mistaken price. Ethically speaking there was no intention on the part of the e-tailer to enter into the contract at this price and hence e-tailer is merely protecting its interest. To ensure that the interest of the consumers are not harmed the e-tailer should properly communicate with the customer and should also negate any applicable cancellation charges so that the customers are not harmed in any way.

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