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The Title 28 of the United States Code QUESTION #3716
Question 1
A high-end electronics store mistakenly advertises a $\text{\$2,000}$ TV for $\text{\$200}$ on its website. A customer buys 10 of them. The store realizes the error and cancels the order. The customer sues. Is the store bound by the $\text{\$200}$ price?
  • Yes, an advertisement is always a binding offer.
  • No, because an advertisement is generally an invitation to deal, not an offer.✔️
  • Yes, because the customer accepted the offer by clicking 'buy.'
  • No, because of the doctrine of mutual mistake.
Correct Answer Explanation
Generally, advertisements are invitations for offers, not offers themselves. Even if treated as an offer, a 'unilateral mistake' where the other party knew or should have known of the error (buying 10 for 10% of the value) allows for rescission.