Section A

In contract law, goods displayed in a shop window with a price tag attached are generally considered to be:

Answer options:

A binding offer.

An invitation to treat.

A counter-offer.

An acceptance.

How to approach this question

Recall the legal status of shop displays established in cases like Fisher v Bell and Pharmaceutical Society of GB v Boots.

Full Answer

B.An invitation to treat.✓ Correct

Goods displayed in a shop window or on shelves are an 'invitation to treat'—an invitation for the customer to make an offer to buy. The customer makes the offer at the till, and the shopkeeper can choose to accept or reject it.

Common mistakes

Assuming a price tag constitutes a legally binding offer.

Question 27 All questions Question 29

Practice the full ACCA LW — Corporate and Business Law Practice Exam 6

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