Facts

Elizabeth is working as an HR manager for Rebel Alliance Manufacturing when she is approached by an executive from Empire Equipment Manufacturing and offered a job. Empire is keen to hire Elizabeth because she has decades of relevant experience. Elizabeth accepts the job with Empire, gives notice to Rebel Alliance Manufacturing and commences employment with Empire in January.

After working with Empire for six weeks, Elizabeth is out on sales calls when she receives an email on her cell phone from the President of Empire, Mr. D. Vader. In the email, Vader asks her to purchase ten iTunes cards each worth $250, and to immediately email him with the activation codes. Elizabeth thinks the request is odd, but as she is new to the organization she is keen to be diligent and helpful. She quickly responds by email to Mr. Vader that she will do as he asks as soon as possible. She copies her immediate superior, Mr. Tarkin, on the email. While she is in between appointments, Elizabeth manages to run into a store to buy the cards.

After buying the cards, Elizabeth replies to the email and sends the activation codes to Mr. Vader. Mr. Tarkin is copied to the email.

The author of the email is quick to respond and asks for the names and emails of the customers that Elizabeth has visited that day. Elizabeth sends him the information.

The next day, Elizabeth receives an email from Tarkin addressed to the whole company. The email says that early the previous week the company became aware of attempts to scam

employees using President Vader`s name and an email address that was similar to company email,but was in fact fraudulent. Tarkin`s email warned the employees to be aware of this risk.

Elizabeth sits down at a desktop computer. She opens up her email and looks at the iTunes email from Vader again. Using the larger screen, she notices that what she had thought was an email from Vader was not actually sent from a company email address; the email address contains additional characters suggesting that it is a phishing scam. She realizes that the author of the email was posing as her company president and that it was fraudulent.

Elizabeth tells Tarkin what happened, and explains that she has charged $2500 in iTunes cards to her personal credit card and responded to the scammer with names and emails of customers. Elizabeth is immediately fired for disclosing private customer information. Tarkin sends an email to the whole company advising that Elizabeth was fired for incompetence.

Questions: Based it in Canada Law.

1) What are the legal issues do you identify? (A legal issue is a question of law raised based upon the facts of a case.)

2) Explain or evaluate the arguments of each side and cite relevant cases.

Does Elizabeth have a right to sue her employer? Why or why not?

Does Rebel Alliance Manufacturing have a claim against Elizabeth? What

other exposure might Rebel Alliance Manufacturing have as a result of the

events?

3) What risk management lessons can business professionals learn from this fact situation?

(Apply legal principles!)

Please dont copy previous answers.