In: Operations Management
CARLILL V CARBOLIC SMOKE BALL CO [1893]
IN THE 1890S, ENGLAND WAS PLAGUED BY TWO RELATED PHENOMENA: AN INFLUENZA EPIDEMIC AND QUACK MEDICINE. THE CARBOLIC SMOKE BALL CO WAS ONE OF MANY COMPANIES THAT TRIED TO CAPITALIZE ON THE COUNTRY’S ILL HEALTH. IT PRODUCED A HAND-HELD GADGET THAT, WHEN SQUEEZED, EMITTED A SMALL CLOUD OF CARBOLIC ACID DUST. THE COMPANY CLAIMED THAT IF ONE INHALED THE DUST REGULARLY, IT WOULD PREVENT A LONG LIST OF AILMENTS RANGING FROM DIPHTHERIA AND BRONCHITIS TO SNORING AND SORE EYES. AS PART OF ITS MARKETING PLOY, THE COMPANY PUBLISHED AN ADVERTISEMENT THAT OFFERED TO PAY £100 TO ANY PERSON WHO CONTRACTED INFLUENZA WHILE USING THE CARBOLIC SMOKE BALL. MRS CARLILL SAW THE AD, BOUGHT THE PRODUCT, AND USED IT AS DIRECTED. WHEN SHE LATER CAME DOWN WITH THE FLU, SHE CLAIMED TO BE ENTITLED TO £100. THE COMPANY REFUSED TO PAY. IT SAID THAT THERE WAS NO CONTRACT BECAUSE SHE HAD NOT TOLD THEM THAT SHE HAD ACCEPTED THEIR OFFER AND WAS USING THEIR PRODUCT.
Do you agree with the Court that the actions of the Company created an offer that was open to be accepted by Ms. Carlill? Do you agree with the concept of "Invitation to Treat"?
Answer) Yes, I absolutely agree with the court that the actions of the company created an offer that was open to be accepted by Ms Carlill. This offer made by the company in the advertisement was an general offer which means any body can accept this order. This can be done in two ways- whether by approaching the company and accepting it or by making an act which symbolises acceptance. In this case, as Ms Carlill bought the medicine and used it, which represents the act that she accepted the order.
Yes,I agree to the concept of Invitation To Offer. This means calling out to somebody or a group or a institution and showing a will to bargain an offer. It is done prior to the offer made and the invitation can be accepted or rejected by the person to whom the offer is made. I agree to this concept because it has to be checked whether to whom the offer is made is ready to take an offer or not. If he/she is ready , then only the offer is made. It saves a lot of time as only relevant people are contacted to make a contract.