Richard received a letter in the mail that he had just won a cash prize of $2 million in a sweepstakes. The letter said all he had to do was return the winning entry coupon in time. In small print at the end of the letter it stated that the winner had been preselected by a computer and if the winner did not respond, then all the names of those who did respond would be put on a list for a draw for the prize and the odds of winning were 1in 130 million. Richard sent in his entry coupon but did not get the $2 million. When he contacted the company and asked where his money was they told him he had not won, but he insisted that the letter said he was a winner. If Richard wanted to take legal action most likely the result would be

Question

Quizplus · Accepted Answer

The company used deceptive tactics to trick people into sending in their entry coupons. They knew that most people would not read the small print and would assume that they had won $2 million. The company's actions were fraudulent, and they are liable for damages. However, the amount of damages that Richard is entitled to is a matter of debate. A punitive award of $15,000 would be appropriate to deter this practice.

Richard Received a Letter in the Mail That He Had