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LAW1000 Business Law

tag 0 Download 3 Pages / 573 Words tag 23-07-2021
  • Course Code: LAW1000
  • University: Babson College
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  • Country: United States

Question 

Requirements of the Offer. Technical Consumer Prod- ucts, Inc. (TCP) makes and distributes energy-efficient lighting products. Emily Bahr was TCP's district sales manager in Min- nesota, North Dakota, and South Dakota when the company announced the details of a bonus plan. A district sales manager who achieved 100 percent year-over-year sales growth and a 42 percent gross margin would earn 200 percent of his or her base salary as a bonus. TCP retained absolute discretion to modify the plan. Bahr's base salary was $42,500. Her final sales results for the year showed 113 percent year-over-year sales growth and a 42 percent gross margin. She anticipated a bonus of $85,945, but TCP could not afford to pay the bonuses as planned, and Bahr received only $34,229. In response to Bahr's claim for breach of contract, TCP argued that the bonus plan was too indefinite to be an offer. Is TCP correct? Explain. [Bahr v. Technical Consumer Products, Inc., 601 Fed.Appx. 359 (6th Cir. 2015)] 
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