You mentioned to me that the store occasionally gives rain checks when it is possible to replenish supplies of an item that Loman’s can purchase at a discount. The store manager declined, and the shopper filed a complaint in Small Claims Court, claiming that Loman’s had breached a contract by failing to sell the advertised leather coats at the advertised price. She then complained that Loman’s was obligated to sell her a comparably valued designer leather coat at the advertised price. At 7:30 a.m., a shopper inquired about the coats and was told that there was none left. on Friday, July 21, and stated that the “early bird catches the savings!” After about fifteen minutes, all the advertised coats had been sold. The ad announced that the store would open at 7 a.m. Loman’s Fashions, a retailer of women’s and men’s outerwear, distributed a circular last July advertising a manufacturer’s closeout of designer women’s leather coats for $59.99, coats that regularly sold for $300.00.
I will explain this conclusion more fully below after first setting out the facts as I understand them. After researching the issue, and based on the facts set out below, I believe that a court would likely conclude that Loman’s did not enter into a contract with this shopper because the advertisement was not an offer to sell the coats thus, there was no contract that Loman’s could breach. Specifically, you have asked for advice on the question whether Loman’s breached a contract with the shopper under the circumstances.
As you’ve described it, the shopper claims that she responded to an ad for a “manufacturer’s closeout” of designer leather coats the ad stated that the “early” shopper would “catch the savings.” The shopper complains that Loman’s failed to have the merchandise to sell at the advertised price. Recently you wrote to us that Loman’s Fashions had been sued by a shopper in Small Claims Court for a breach of contract.
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