
In this case, the manufacturer had discontinued the line of coats and Loman’s was not prepared to sell other, designer leather coats at such a drastic markdown. Loman’s president, Willi Loman, stated that the store occasionally gives rain checks when it is possible to replenish supplies of an item that Loman’s can purchase at a discount. The store manager declined, and the shopper filed a complaint in Small Claims Court, 9 alleging that Loman’s had breached a contract by failing to sell the advertised leather coats at the advertised price.

At 7:30 a.m., a shopper inquired about the coats and was told that there were none left, but she complained that Loman’s was obligated to sell her a comparably valued designer leather coat at the advertised price. on Friday, November 30, and stated that the “early bird catches the savings!” After about fifteen minutes, all the advertised coats had been sold. The ad announced that the store would open at 7 a.m. Loman’s Fashions, a retailer of women’s and men’s outerwear, distributed a circular in November advertising a manufacturer’s closeout of designer women’s leather coats for $59.99, coats that regularly sold for $300.00.

7 Where, as here, the text of the advertisement merely stated that the sale was a “manufacturer’s closeout” and that the “early” shopper would “catch the savings,” the advertisement was not an offer to sell the coat which could be converted into a binding contract by conduct signifying an acceptance of the advertised terms. Under New York law, 2 did 3 Loman’s Fashions’ description of a designer leather coat in an advertising circular constitute an offer 4 to sell the coat which became a binding contract when the text of the advertisement indicated that the coats were a “manufacturer’s closeout” and that the early shopper would be rewarded, and when a shopper signified her intent to purchase the coat according to the advertised terms? 5 RE: Loman’s Fashions – Breach of contract claim (advertising circular)
