1.
Requirements of the Offer. Technical
Consumer Products, Inc. (TCP) makes and distributes energy-efficient lighting products.
Emily Bahr was TCPs district sales manager in Minnesota, 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. Bahrs base salary
was $42,500. Her final sales results for the year showed 113 percent
year-over-year
1.
Requirements of the Offer. Technical
Consumer Products, Inc. (TCP) makes and distributes energy-efficient lighting products.
Emily Bahr was TCPs district sales manager in Minnesota, 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. Bahrs 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 Bahrs 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)] (See Agreement.)
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