Question

Constantine is employed by Dirt Enterprises Ltd as a junior clerk in the mail room. He is sacked because of his inefficiency. On his last day with the company, Constantine, using the appropriate order form, orders ten million gizmos at a cost of $100,000 from Fixit Pty Ltd, a company which has a long connection with Dirt Enterprises. This item is old-fashioned technology, and Dirt has not used them for five years. When the gizmos are delivered, Dirt refuses to accept them, and refuses to pay. Dirt tells Fixit that Constantine had no authority to place the order. Advise Dirt Enterprises on the liability for the actions of an agent.

Answer 1

In this scenario, Dirt Enterprise has to accept that there has been a mistake made by them (their employee). They are obliged to write to or speak to Fixit Pty and make them understand that the order was placed by mistake.

As the gizmos were old fashioned and have been used for (or ordered) in the past five years, they have a valid chance to prove that there was a mistake on their side. Not communicating the same with Fixit pty Ltd will Impact in the five-year-long healthy relationship.

As a measure, they have to write to Fixit technology, stating that order was made by an error by their employee and they already took corrective measures against the responsible employee. Now Dirt enterprise Ltd has to arrange free return back, and if possible as a measure to sustain the relationship order the gizmos or products from Fixit technology which they can use.

Also, Dirt Ltd Enterprise has to communicate with the employee Constantine and make him aware of the consequences that business will have to face. Either they give him a final warning and also help him with guidance that can help him become more effective at the workplace or they can have the HR department take care as needed.