The Games café is an internet café with an innovative edge, diversifying into the market for computer games and consoles unlike any other known competitors. The business is currently experiencing legal issues and is in need of updating its policies and practices; the café has recently joined the small business federation and have been assigned with legal advisory for best practices on contractual and consumer matters.
The Games Cafe needs to improve on how it regulates business operations by adapting suitable policies and practices in order to legally protect the business and help it to operate more effectively. Following are the policies and written reports that have been proposed to them.
Proposed Policy & Practices& Advisory Reports
An Invitation to Treat: (Not binding) SEE ALSO: (FIGURE: A)
Proposed application of Invitation to treat:
Advertisement (Figure A) has been devised to be on display in the shop window. The Advertisement itself is an invitation to treat, as well as promoting further invitations to treat with the content that is within the advert.
Price tags: “Tea: £1.40, Coffee: £1.35” Invitation to treat not an offer. E.g. if price was printed wrong, “Tea: £14.00” The customer would not have to pay that amount. (Figure A)
“We offer Cash amounts of up to £35 paid for your used games” Statement of invitation to treat, invites customer /external party to potentially make an offer (Figure A).
An Invitation to Treat: Report, Appropriate cases & legislation:
“This is where a person holds himself out as ready to receive offers, which he may then either accept or reject”
Dennis J.Keenan, Sarah Riches (2005, p.244)
“Offer to receive an offer. Under UK law, the price tag on an item displayed in a shop window (or advertised over public media) is an invitation-to-treat and not an offer of sale (the acceptance of which constitutes a contract).”
Business Dictionary: