Question

Jack is the senior salesperson at Ace Electronics in Soho, New York. Ace’s sales were over $10 million during 2019. At Ace’s holiday party on December 20, 2019, Ace’s president, Brown, in a speech, publicly praised Jack, and stated that Jack would receive an additional $100,000 bonus for his excellent performance in 2019. On December 21, 2019, Jack received an email from Brown confirming Brown’s earlier promise. During the second week of January 2020, Ace received an unprecedented number of returns of defective merchandise, which eliminated much of its profits for 2019. Brown blamed Jack for this unfortunate downturn and refused to pay the $100,000 bonus. Jack sues Ace for the $100,000 bonus. Judgment for whom? Explain fully. Would your answer to part (a) be different if Brown’s promise at the party was not confirmed by email? Explain fully.

Answer 1

Facts of the Case: Jack is Senior salesperson. In Ace's holiday party Brown confirmed the bonus only for Jack for amount of 100000$. Where as Annual sale of the Ace is only 10000000$ ( 1 Crore $). It means 1% of bonus only to single individual. Later on Verbal promise formed in documented form by confirming over the mail. Later on due to error in the sale reporting, Management refuses to offer the same to jack.

As above facts ,complete adandon the bonus part of Jack after confirmation, becasue of the unfortunate downtrun in profit. Seems not unusal as per business environment. Becasue this is the situation where company wants to cut cost. On other side, simply giving reason of degradation of profit, ( A False Cause), This may lead to opening of audit of books if the court order. Secondly as per Labour and Welfare laws are very prominent in these types of situation, where rights of employee is fired or abused by the owners. Court may address to pay the bonus part to Jack after clear understanding of the facts of the Ace Company. Simply just to deny the bonus part, make up of books is not been made.

Yes, Situation will be different if same is not confirmed over email, as there is no documentary proof of such action. Secondly announcment is made in the informal kind of meeting, not proper flow of information being made, neither agenda, meetings or proper flow of decision is made. So here if same is proceed into court, decision will not be made in the favour of Jack for sure as the case is not held as tenable in Law.