state whether agree or disagree (and why) with the court's decision or with the dissenting judge.
CASE 9.2 FEDERAL COURT CASE Type of Contract Lagen v. United Continental Holdings, Inc. 774 F.3d 1124, 2014 U.S. App. Lexis 24216 (2014) United States Court of Appeals for the Seventh Circuit "A person could be forgiven for thinking that a Issue "lifetime" benefit that can vanish in an instant is an Was a unilateral contract formed when Lagen flew oxymoron." one million miles on United? -Wood, Chief Judge Language of the Court A person could be forgiven for thinking that a Facts "lifetime" benefit that can vanish in an instant United Airlines operated a MileagePlus frequent is an oxymoron. Lagen did just what United flyer program that allowed customers to collect asked: he racked up the required miles. Since rewards such as free flights and seat upgrades in the MileagePlus Program Rules plainly allow exchange for patronizing United. MileagePlus Rules United to reduce benefits on a whim, Lagen allowed United to change the terms of the program cannot prevail. unilaterally and without notice. United offered a Million-Mile Flyer status to Mileage Plus members Hamilton, Circuit Judge, dissenting after they had flown more than one million miles United could not-honestly and legally- on United. Reaching this status offered additional promise "lifetime" benefits while reserving the benefits. After seeing the advertisements for the right to cancel its promise at any time and for million-mile program, George Lagen changed from any reason. Our court should not, as a matter using other airlines to almost exclusively patron- of contract law, endorse this deception. This is izing United. In 10 years, Lagen became a million- legal sophistry in defense of consumer fraud. mile flyer and received the upgraded benefits that came with this status. However, after United I respectfully dissent. merged with Continental Airlines, the airline sub- Decision stantially reduced the benefits of patrons who were The U.S. court of appeals affirmed the district court's million-mile members, Lagen sued United, alleging decision that held that a unilateral contract had not that United breached a unilateral contract. Lagen been formed between United and Lagen. Therefore, argued that United made an offer for a unilateral contract and his performance of flying over one there was no breach of contract when United reduced million miles on United created a binding unilateral the privileges of million-mile flyers such a Lagen. contract. United argued that no unilateral contract was formed because it reserved that right to change Critical Legal Thinking Questions the terms of the program whenever it wanted. The Do you agree with the court's decision or with the U.S. district court granted summary judgment to dissenting judge? Did United act ethically in this United, Lagen appealed. case? Do think that consumer fraud has occurred
