What is an "American Baby"

The U.S. toymaker Toys R Us recently ran a competition whereby the "first American baby" born in 2007 would receive a $25,000 bond. The apparent winner was born in New York City at the stroke of midnight on January 1st. After naming the baby of Chinese immigrant Yan Zhu Liu as the winner, the company quickly revoked the prize claiming that the baby was not an "American baby" because the parents are not citizens or legal residents of the United States. The award was then given to a child in Georgia, whose parents were both "born and bred" Americans. A firestorm erupted as Chinese-American pressure groups cried foul. The company, sensing a public relations disaster, quickly reversed itself again and gave the $25,000 prize not only to Ms. Liu's child, but also allowed the child born in Georgia to keep its prize. The company even decided to give the award to a third child, whose parents are immigrants from El Salvador. Apparently, the fine print contained within the sweepstakes' rules limited winners to children born to American citizens or legal residents, but the large print simply said "American baby", raising some interesting contract interpretation questions. With our Common Law of Contract exam fast approaching, here is another question to ponder. Why is a competition like this one deemed an offer and not an invitation to treat?