Swimmingpool Co Pty Ltd employs Martin as the manager of
their Tasmanian sales division. Martin is to quote to potential customers the
cost of installing the various pools that the company offers, to draw up any
new contracts on behalf of the company and further to ensure that a deposit is
paid by potential customers, monies which are then deposited in the company’s
bank account. Martin is on a fixed salary but his contract of employment allows
for the payment of a bonus if he exceeds his annual target of signing new
customers.
The company is very impressed with Martin in the first month
of his employment; he has signed at least 20 new customers and work has begun
on at least half of the new projects signed.
After the lapse of another month the company receives a
number of complaints from customers who claim that the construction of their
swimming pool is substantially different to what they had contracted for. A number
of customers were given wrong advice on the suitability of the placement of
their new swimming pool, which means some newly constructed pools are sinking
into the ground, the repair of which will cost the company considerably. It
appears also that some of the deposits have not been paid into the company’s
bank. Martin appears to have kept part of the money collected. The company also
discovers that Martin is in the process of setting up his own business which
will compete with Swimmingpool Co.
In considering the facts above make some legal observations
on the following:
1. Is Swimmingpool Co liable for Martin’s actions? On what
basis in law would this be the case?
2. Can the company claim they are not liable for Martin
because he has not followed instructions? Explain.
3. Is Martin liable to his employer for any of his actions?
On what basis in law would he be liable?
4. Has Martin breached any law if he is planning to set up
his business? Explain.
0 comments:
Post a Comment