Bethy sees a coat on shop window with a $100 price tag. She comes and asks the shop owner to buy it. The owner states that the price has not been updated and the current price for the coat is $120. Bethy says the owner should honour the quoted price on window shop. Is Bethy correct?

Bethy sees a coat on shop window with a $100 price tag. She comes and asks the shop owner to buy it. The owner states that the price has not been updated and the current price for the coat is $120. Bethy says the owner should honour the quoted price on window shop. Is Bethy correct?
A . Yes, the owner has made an offer by showing his product on the shop window and he must honour that offer
B. Yes, $120 for a coat is extremely unreasonable and the owner’s later offer therefore void
C. No, the display on shop window is just an invitation to treat and the owner may change the price at his will
D. No, the owner is revoking his initial offer to sell at $100 and he is proposing new offer to Bethy

View Answer

Answer: C

Explanation:

Based on two famous precedents, Fisher v. Bell (1961) and Pharmaceutical Society of Great Britain v. Boots Cash Chemists (1953), the display on shop window is considered as an invitation to treat. The shop owner can change the price when his customer asks to buy.

Reference: CIPS study guide page 29

LO 1, AC 1.2