ExpertEasy2 marksMultiple Choice
ACCA · Question 04 · Corporate and Business Law
A shop displays a laptop in its window with a price tag of £50. The actual price is £500. A customer attempts to buy the laptop for £50. What is the legal position?
A shop displays a laptop in its window with a price tag of £50. The actual price is £500. A customer attempts to buy the laptop for £50. What is the legal position?
Answer options:
A.
The display is an offer which the customer accepts by taking it to the till.
B.
The display is an invitation to treat; the customer makes an offer which the shop can reject.
C.
The shop is legally bound to sell the laptop for £50 due to consumer protection laws.
D.
The contract is voidable due to a unilateral mistake.
How to approach this question
Apply the legal distinction between an offer and an invitation to treat.
Full Answer
B.The display is an invitation to treat; the customer makes an offer which the shop can reject.✓ Correct
Goods displayed in a shop window or on a shelf are invitations to treat. The customer makes the offer at the till, which the shopkeeper is free to accept or reject.
Common mistakes
Assuming a price tag constitutes a binding legal offer.
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