A shop displays a laptop in its window with a price tag of £50. The actual price is £500. A customer attempts to buy the laptop for £50. What is the legal position?

Answer options:

The display is an offer which the customer accepts by taking it to the till.

The display is an invitation to treat; the customer makes an offer which the shop can reject.

The shop is legally bound to sell the laptop for £50 due to consumer protection laws.

The contract is voidable due to a unilateral mistake.

How to approach this question

Apply the legal distinction between an offer and an invitation to treat.

Full Answer

B.The display is an invitation to treat; the customer makes an offer which the shop can reject.✓ Correct

Goods displayed in a shop window or on a shelf are invitations to treat. The customer makes the offer at the till, which the shopkeeper is free to accept or reject.

Common mistakes

Assuming a price tag constitutes a binding legal offer.

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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A shop displays a laptop in its window with a price tag of £50. The actual price is £500. A customer attempts to buy the laptop for £50. What is the legal position?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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