A few years ago, Chuckie Norris was promoted from a forklift operator to parts manager at Trailrocks
Question:
A few years ago, Chuckie Norris was promoted from a forklift operator to parts manager at Trailrocks Inc. Ever since, he has learned much about how to run a dealership. His natural curiosity and commonsense approach led the company president to offer him an opportunity to do just that. Norris applied for the necessary credit, but his bank denied the application because Norris lacked collateral. Norris decided to find a business partner in order to get the loan. After doing some homework, his new partner suggested that Norris continue working at Trailrocks while they set up a competing dealership. After seeing the potential profits of striking out on their own, Norris agreed. Norris led Trailrocks and its customers to believe that he would open a dealership with a partner so that he could maintain his current job. Norris failed to mention that they would in fact be competing with Trailrocks. While putting the competing business in place, Norris was sold some of Trailrocks’ inventory at discount. Since Trailrocks believed the store would be part of its chain, it also allowed Norris access to its database of customer information. After the opening, when Trailrocks finally figured out that the new dealership was a competitor, it instantly fired Norris. Since Norris had never signed a non-competition clause, he decided to sue Trailrocks for wrongful dismissal. Was Norris’s behaviour just cause for his summary dismissal? Is it necessary for Trailrocks to prove fraud to justify the dismissal?
Step by Step Answer:
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0132164429
4th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer