In the Classic Case of Carlill V

question 9

Multiple Choice

In the classic case of Carlill v. Carbolic Smoke Ball Company, the defendants manufactured a product they claimed would protect against influenza. The company advertised that it would pay a specific sum of money to anyone who contracted influenza while using their product, and put money on deposit to demonstrate their sincerity. When Mrs. Carlill claimed the money, the company argued that these statements were not intended to be taken seriously. What did the Court decide?

• A) There was intention because a reasonable person would have thought that the advertisement was serious.
• B) There was no intention because the company did not intend for the statements to be taken seriously.
• C) There was no intention because the claims made by the company were not put into a standard form agreement.
• D) There was intention because Mrs. Carlill took the advertisement seriously.
• E) Intention is irrelevant to whether or not a contract is valid.

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Definitions:

National Debt

The total amount of money that a country's government has borrowed and not yet repaid, often through the issuance of securities.

Inflationary Gap

The difference between the actual output of an economy and the output it could achieve with full employment, leading to inflation when demand outstrips supply.

GDP

The total economic value of all end goods and services made within a nation's borders during a specific period is known as Gross Domestic Product.

Inflationary Gap

A situation where the demand for goods and services exceeds the supply, leading to inflation and an overheating economy.