Tina was employed by a firm of Law book publishers based in Perth who were consi

Question

Tina was employed by a firm of Law book publishers based in Perth who were considering opening a branch office in Gold coast. Tina was instructed to visit the area, make enquiries and report back to head office with a recommendation. When Tina arrived in Gold coast, she was so impressed with its potential that she took action to set up an office before receiving further instructions from Head Office. On behalf of her firm she leased suitable premises, bought office equipment, placed advertisements in the local newspaper and purchased a small 2 sailing boat which she intended to use for entertaining clients of the firm. In each case she arranged for the accounts to be forwarded to Head Office. Tina’s firm decided not to establish a branch office in Gold coast but they began to receive accounts for the unauthorised purchases. Required: Referring to relevant cases and legislation, explain the legal position of Tina and her employers regarding payment of the accounts.

Explanation / Answer

In this case,Tina is not legally authorised to make the purchases on behalf of the organization.she was supposed to visit the area,make enquiries,and report back to head office with a reccomendation.Account for such unauthorised purchases can't be forwarded legally for approval.The employer,in this case,is in a legal position to take necessary steps against this act of his employee.The employee has the right to deduction from pay from the employee on the basis of compensation for financial losses for the company

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.