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Yeah. Uh This is Lee Habib and this is Our American Stories. And we tell stories about everything here on this show, including your stories. Send them to ouramericanstories.com. They're some of our favorites.
And up next, a curious case of contract law. In 1996, one John Leonard sued Pepsi. over a promise that he saw as Renegdon. But that's only half of the story. use our own Monty Montgomery to help tell the rest.
Court cases. are serious business. If I put this kneecap on, Who am I? I'm still Johnny Cochrane with a knick cap. Court cases are important.
If Douglas touches me, you will not be happy, Your Honor. You know what? If Douglas beats you to a pump, I'll be delighted. Get out! And there's one court case in the 90s that was truly astounding.
And no. It's not the people vs. OJ. I'm talking about Leonard vs. PepsiCo Inc.
Here's Sean Curtin of Medium with this dramatic story of deceit. twists and turns. and a contract block. In 1996, Pepsi rolled out one of its Drink Pepsi Get Stuff campaigns. It was your usual promotion where you get points to purchases that you can later use.
The TV ad targeted teenage and early 20s customers. It showed all these cool things you could win with Pepsi points. They showed a kid wearing a Pepsi t-shirt, 75 Pepsi points. He was wearing a leather jacket that was 1450 points. He had sunglasses on that were 175 points.
They then boasted, the more Pepsi you drink, the more great stuff you're going to get. Then it escalated. Mm. The commercial ends with that same kid who was wearing the leather jacket and sunglasses landing a Harrier jet in front of a school. Everyone's papers were blowing off of their desks, and kids were crowding to the window to see the jet landing.
And there, in the courtyard, is a literal Harrier with the kid in it. The jet is armed to the teeth. And below it it says, Harrier Fighter, 7 million Pepsi points. The campaign was mostly a success as sales increased significantly, but there would be an interesting twist in this promotion. A 21-year-old business student, John Leonard, saw the commercial and took a particular interest in that jet.
To get the Harrier, he would need to buy millions of Pepsis. Most winning Pepsis only had one point on the label.
Some had three and five, but there were no 1 million Pepsi point bottles. But there was a workaround. John noticed the fine print said you could buy points to get the merchandise instead. Each point was 10 cents.
So for example, the 1450 point jacket cost $145. The 175 point sunglasses would cost $17.50. Notably, both items likely cost a fraction of that to make, but it was good margins and smart business. What Pepsi failed to notice was the margins on the Harrier, which wasn't listed in the catalog, but was advertised in the commercial. John did some quick math and realized that the 7 million point Harrier would cost $700,000.
Back in the real world, a fresh Harrier sells for north of $30 million. John Leonard found four investors who all pitched in. He then sent the check for $700,000 directly to Pepste. Um His check said he wished to redeem his points for the Harrier they'd advertise in the commercial. And thus began a war of letters.
Pepsi's marketing team wrote back. The item you've requested is not part of the Pepsi stuff collection. It is not included in the catalog or in the order form. Only catalog merchandise can be redeemed under this program. The Harrier Jet in the commercial is fanciful and is included simply to create a humorous and entertaining ad.
We apologize for any misunderstanding or confusion that you may have experienced. We are including some free product coupons for your use. John Leonard was not satisfied. His lawyer wrote a response. Your letter of May 7th, 1996 is totally unacceptable.
We have reviewed the videotape of the Pepsi stuff commercial and it clearly offers a new Harrier jet for 7 million Pepsi points. Our client followed your rules explicitly. This is a formal demand that you honor your commitment and make immediate arrangements to transfer the new Harrier Jet to our client. If we do not receive transfer instructions within 10 business days of the date of this letter, you will leave us with no choice but to file an appropriate action against Pepsi. Pepsi's senior marketing executive, Raymond McGovern, then jumped in with his own letter.
I find it hard to believe that you are of the opinion that the Pepsi Stuff Commercial, quote, commercial, really offers a new Harrier jet. The use of the jet was clearly a joke that was meant to make the commercial more humorous and entertaining. In my opinion, no reasonable person would agree with your analysis of the commercial. This is when formal court cases started firing up. Quite comically, Pepsi had to file an official case stating they shouldn't be required to furnish a Harrier jet to John Leonard.
For the next three years, this case weaved through court systems before a judge ruled in Pepsi's favor for two key reasons. One, a commercial is not a contractual offer. Two, the commercial was clearly tongue-in-cheek. No reasonable person would have thought the offer was real. Lastly, and quite humorously again, the judge added this commentary.
In light of the Harrier jet's well-documented function in attacking and destroying surface-to-air targets, armed reconnaissance and air interdiction, and offensive and defensive anti-aircraft warfare, depiction of such a jet as a way to get to school in the morning is clearly not serious, even if the plaintiff contends the jet can be delivered in a form that removes its military use. Pepsi went on to amend its commercial, changing 7 million points to 700 million points. They would also add a small print to the advertisement, saying, Just kidding. If there's any silver lining to all this madness, The case has now become a staple in law schools. A good majority of legal students will end up studying Leonard vs.
PepsiCo Inc. as the case offers an entertaining look into the infinite gray area of contract law. All that being said, a small part of me still wishes they'd just given the guy the Harrier. or does something cool for him besides offering a few coupons. And a great job by Monty Montgomery, and just a delight to listen to.
And in its own way, a kind of prank. I mean, they just wanted to see what would happen, but the idea of wrangling together $700,000 to just, well, stick it to Pepsi. Just have some fun. And of course, the court stuck it right back to these folks, but they've always had this story as a result. And a great law case.
The story of John Leonard. And a suit. against Pepsi for a Harrier jet. Here. on our American stories.
Lee Habib here, and I'd like to encourage you to subscribe to Our American Stories on Apple Podcasts, the iHeartRadio app, Spotify, or wherever you get our podcasts. Any story you missed or want to hear again can be found there daily. Again, Please subscribe to the Our American Stories podcast on Apple Podcasts, the iHeartRadio app, or anywhere you get your podcasts. It helps us keep these great American stories coming. Life gets messy.
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