FIRAC Model: Analyzing the McDavid's Money Ad on TikTok

Instructions

The McDavid's Money Ad on TikTok

McDavid's Restaurant, famous for its purple arches, french fries, burgers, and Fun Meals, TM utilizes a variety of forms of media to advertise its menu, including TikTok ads. In a recent national campaign, consumers could earn "McDavid's Money" for specific food or drink purchases from franchised stores that they could exchange for certain food or drink items, or various promotional items.

Consumers could obtain McDavid's Money in three ways:

• with the purchase of a kids' Fun Meal TMM;

• purchase of large-sized drinks that contained pull-off tabs with varying amounts of McDavid's Money; and

• an unlimited amount of McDavid's Money could be purchased from McDavids.com by submitting an order for an online direct purchase of McDavid's Money ($0.05 for 1 McDavid's Dollar).

One TikTok advertisement featured their primary mascot, Donald McDavid, hanging a famous Jesus LaSalle original painting entitled "Heart of a Rainbow” in his house while stating, “you can purchase this item for 2,000,000 McDavid's Money dollars." 

Art collector Wendy Thomas saw the Donald McDavid ad on TikTok on October 1, 2020. She owns two other LaSalle paintings and was eager to obtain Heart of a Rainbow. After seeing the ad, Wendy purchased one large drink from McDavid's containing a pull-tab worth 25 McDavid Money dollars. Over the next several weeks, Wendy purchased another 1,999,975 McDavid Money dollars online for $99,998.75. This brought her total McDavid money balance to 2 million McDavid Money dollars —the amount Donald McDavid stated was necessary to obtain this original LaSalle painting.

The next day, Wendy presented the 2 Million McDavid Money dollars to her local McDavid's franchise in Toledo, Ohio to acquire "Heart of a Rainbow.” Employees at the franchise refused to process Wendy's McDavid's Money and told her to contact corporate headquarters. The following day, Wendy presented her McDavid's Money at McDavid's Headquarters in Detroit, which also refused to accept the McDavid's Money in exchange for the original painting. After consulting with an attorney, Wendy has sued McDavid's, Inc., for breach of contract, claiming that the TikTok ad created an offer of a unilateral contract for “Heart of a Rainbow" that she accepted when you tendered 2 million McDavid's Money dollars.

Instructions: Use the FIRAC Model to analyze Wendy's claims against McDavid's Restaurant.