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ABC Company makes widgets and sends its best salesman, Bob, ...

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ABC Company makes widgets and...
ABC Company makes widgets and sends its best salesman, Bob, to call on an old client—Old Guard. Bob persuades Old Guard to place a large order. Bob gave old Guard such a good deal that Old Guard gave Bob gift certificates in a fairly substantial amount, representing 10% of Old Guard's savings that flow from the contract. Old Guard insisted that the gift was to Bob personally. Bob's employment contract does not mention such “fringe benefits” from customers. What, if any, are Bob's rights and duties with respect to the gift, and why?
     
Submitted: 9 years ago.Category: Legal
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Answered in 7 minutes by:
5/1/2008
Lawyer: rvlaw, Lawyer (JD) replied 9 years ago
rvlaw
rvlaw, Lawyer (JD)
Category: Legal
Satisfied Customers: 8,386
Experience: NYC Trial Atty. 30 yrs.- pers. inj., contracts, real estate, criminal, estates, matrimonial.
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Hi,

As an employee, Bob owes a duty of loyalty, honesty and fair dealing in connection with his performance. The facts here indicate that the price given by Bob was $X. Old Guard then gives Bob 10% of its savings on the deal. That means that the actual price should have been $X + the 10%. Bob has effectively stolen part of the profit that belongs to his employer despite what Old Guard says the 10% represents.

 

Rich

This is information only, NOT legal advice. No attorney-client relationship has been created. Consult an attorney in your state for legal advice regarding your issue.

 

rvlaw
rvlaw, Lawyer (JD)
Category: Legal
Satisfied Customers: 8,386
Experience: NYC Trial Atty. 30 yrs.- pers. inj., contracts, real estate, criminal, estates, matrimonial.
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Satisfied Customers: 8,386
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Experience: NYC Trial Atty. 30 yrs.- pers. inj., contracts, real estate, criminal, estates, matrimonial.

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