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Effect of Advertisement on Consumer Behavior
Carlill vs the carbolic smokeball company case summary
Carllil vs carbolic smoke ball and company case
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Case in hand: Carlill v Carbolic Smoke Ball Company [1893] 1 QB 256; Court of Appeal, 1892 Dec. 6,7, LINDLEY, BOWEN and A. L. SMITH, L.JJ. The ‘Carbolic Smoke Ball’ company was selling self-proclaimed health enhancing and disease curing ‘Smoke Balls’ during and throughout the 1890’s. Whilst advertising the product, they professed that absolutely nobody who used their product in their recommended usage pattern would contract a list of diseases that the company had outlined. The brave and sales-enhancing campaign further claimed that they were so confident in their previous proclamations, that they would reward anybody who later contracted the mentioned diseases £100 compensation for such event. They put a sum of capital (£1000) away in order to support the sincerity in this offer and advertised that they had done such a thing. After reportedly using the company’s device according to the guidelines that the company had suggested, Mrs. Louisa Elizabeth Carlill contracted Influenza, a disease listed as one which would be eradicated by the use of the product. Subsequently, Carlill attempted to claim her compensation, however she was refused the payout and decided to take the company to court. The company, in court, argued that their claims were not serious, that is was simply ‘trade puff’ and that it was impossible to contract with the whole world via advertisement, whereas it was to plaintiff to prove the sincerity in the company’s advertisement in order to win the case. The court would have to prove that the defendant intended to construe a legally binding agreement/contract with their proclamations in order to rule that the company was in fact liable for Carlill’s claim. A binding contract is simply explained by Sir Frederick Po... ... middle of paper ... ...arlill-v-Carbolic-Smoke-Ball-Co.php [Accessed Thursday 2nd January 2014]. Legal Centre (2014) Online Shopping Rights [Online] Available from: [Accessed Thursday 2nd January 2014]. http://www.legalcentre.co.uk/consumer/arts/online-shopping-rights/ S. Riches, V. Allen (2013) Keenan and Riches’ BUSINESS LAW. Eleventh Edition. Pearson Education Ltd. The Free Dictionary (2014) Unilateral Contract [Online] Available from: http://legal-dictionary.thefreedictionary.com/Unilateral+contract [Accessed Thursday 2nd January 2014]. UK Law Online (2004) Carlill V Carbolic Smoke Ball Company [Online] Available from: http://www.leeds.ac.uk/law/hamlyn/carlill.htm [Accessed Thursday 2nd January 2014]. UK Essays (2014) Contract Law | Contract Law Cases [Online] Available from: [Accessed Thursday 2nd January 2014]. http://www.ukessays.com/essays/law/contract-law.php#ixzz2pOUSiowF
Equuscorp Pty Ltd v Haxton; Equuscorp Pty Ltd v Bassat; Equuscorp Pty Ltd v Cunningham's Warehouse Sales Pty Ltd (2012) 246 CLR 498
Sweeney, B, O'Reilly, J & Coleman, A 2013, Law in Commerce, 5th edition, Lexis Nexis, Australia.
...nd Services Act 1973 (TAS), Fair Trading Act 1999 (VIC), Fair Trading Act 1987 (NSW), Fair Trading Act 1989 (Qld), Fair Trading Act 1987 (SA), Consumer Transactions Act 1972 (SA), Manufacturer’s Warranty Act 1974, Fair Trading Act 1987 (WA), Consumer Affairs Act 1971 (WA), Door to Door Trading Act 1987 (WA), Consumer is
9. Woodgate, R., Black, A., Biggs, J., Owens, D. (2003). Legal Studies for Queensland, Volume 1, ForthEdition, Legal Eagle Publications: Queensland. 10. Woodgate, R., Black, A., Biggs, J., Owens, D. (2003).
Borio, Gene, “Tobacco Timeline: The Twentieth Century 1900-1949—The Rise of the Cigarette.” Chapter 6. 1993-2003.
Smoking has been a major part of American culture since the end of the nineteenth century. While it made its most public debut while prohibition of alcohol was going on, it was seen as a negative thing just the same as drinking. With people beginning to feel negatively against smoking, as the same as drinking alcohol, it almost made the activity more popular. At this time there was a “rise in popularity in tobacco, especially in its new and most devious form, the cigarette” (Brandt, p.45).What brand a person smoked was all on preference, but the popularity of them was all on how it was advertised. It was known that a person “buys brands rather than cigarettes and it is the advertising that has built up this prestige in the consumers’ eyes for a particular product (Brandt, p. 78)”. One of the first main brands that became popular was Camel under the company of RJ Reynolds. Camel cigarettes were very successful and their advertisements are more than half the reason for it.
The scenario I have been given highlights the main complexity of contract law. It touches on issues such as unilateral contracts, revocation as well as advertisement. I will be advising Mick (claimant) answering: Whether Yummy chocolate is liable to give a year supply of chocolate as advertised?
Andrews N, Strangers to Justice No Longer: The Reversal of the Privity Rule under the Contracts (Rights of Third Parties) Act 1999 (2001) 60 The Cambridge Law Journal 353
Having evaluated the current state of English contract law, mainly made up of piecemeal solutions, it can be seen that despite being satisfactory and doing its job, there still remain gaps within the law of contract where unfairness is not dealt with. Moreover, due to the ad hoc nature of those piecemeal solutions, the latter have often produced inconsistent justice and have manifested cases of unfairness. Hence, “a relatively small number of respected Justices have endeavored to draw attention to the fact that the application of a general principle might be useful and even necessary in English law.”
Based on common law and precedent, the English law of contract has been formulated and developed over a number of years with it’s primary purpose to provide a regulated framework within which individuals can contract freely. In order to ensure a contract is enforceable there are certain elements which must be satisfied, one of which is the doctrine of consideration. Lord Denning famously professed; “the doctrine of consideration is too firmly fixed to be overthrown by a side wind” . This is a crucial indication that consideration has long been regarded as the cardinal ‘badge of enforceability’ in the formulation and variation of contracts in English common law.
James G. Skakoon, W. J. King and Alan Sklar (2007). The Unwritten Laws of Business. /: Tantor Media.
Slideshare (2004) Carlill v Carbolic smoke Ball Company [online] Available from: http://www.slideshare.net/VivekAnanda1/carbolic-smoke-ball-co [Accessed: 2nd January 2014]
Moynihan, Ray, and David Henry. "Selling Sickness: The Pharmaceutical Industry and Disease Mongering." Http://www.bmj.com/. Bmj, 13 Apr. 2002. Web. 7 Mar. 2012. .
Carbolic Smokeball Company refused to pay the promised reward and Carlill sued the company for damages arising from breach of contract. Judgment for hundred pounds was entered and the Carbolic Smokeball Company appealed. (Lawnix, 20...
Although it is beneficial for the economy for the production of tobacco products it is extremely risky to use the product. According to researchers second-hand smoke is terrible for everyone in the world who walk by someone who is exhaling. In the article by Robert Proctor “Why ban the sale of cigarettes? The case for abolition” he states that cigarettes are the “most deadl...