Part a: General Motors sells an automobile to Marquart Auto Dealers at a price that includes six months of telematics services such as navigation and remote diagnostics. These telematics services are regularly sold on a stand-alone basis by General Motors for a monthly fee. After the six-month period, the consumer can renew these services on a fee basis with General Motors.
Instruction: Are the automobile and the telematics services distinct within the contract?
Part b: Air Orillia offers its customers points every time they fly with the airline. During the year, the airline offered 1,000 points on a flight that was paid for in advance by the customer for $1,000 cash. Air Orillia estimates that based on history, only 90% of the points will be redeemed. The stand-alone value of the points expected to be redeemed is $50 (taking into account the breakage factor) and the value for the flight is $980.
Instruction: Do the loyalty points offer a material right to the customer?