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Dan, President of BAZ Company, is happy with the extraordinary performance of Naomi, a BAZ Company senior accountant. Dan informs Naomi that because of her
Dan, President of BAZ Company, is happy with the extraordinary performance of Naomi, a BAZ Company senior accountant. Dan informs Naomi that because of her superlative work in the past fiscal year, he is going to give her a 5 percent raise effective next month. Naomi, who has never heard of anyone at BAZ Company getting a raise, is thrilled and thanks Dan. Later that day, Dan realizes that giving Naomi this raise might cause all senior accountants to demand salary increases. Dan decides not to give Naomi a raise after all. He believes that his promise to give her a raise is not legally binding. Dan is correct because:
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