Facts: Sales of pet carriers is going well so that Bat Pet Carriers Pty Ltd decides to employ Kacy

Chen as the manager of their Victorian sales division. Kacy is to quote to potential customers on the supply of a range of animal carriers, including the manufacture of carriers to fit any size animal, including carriers to transport animals between zoos and wildlife sanctuaries in

Victoria. Part of her job is to measure the animal and ensure that the crate is of sufficient size so that it will comply with animal transport regulations. Having done this it is also up to Kacy to draw up the contract on behalf of the company and, further, ensure that a deposit is paid by potential customers. These monies are then deposited in the company's bank account. Kacy is on a fixed salary, but her contract of employment allows for the payment of a bonus if she exceeds her annual target of sales. Javan and Dusky are very impressed with Kacy in the first month of her employment; she has signed to sell at least 50 pet carriers. These carriers are made and shipped to Victoria and delivered to customers.

After another fortnight has elapsed, the company receives several complaints from customers who claim that the size of their pet carriers is substantially incorrect and, in many cases, cannot fit the animal it was designed to transport. Several customers were also given wrong advice on the suitable material of manufacture, with plastic carriers being recommended for large animals when wire was in fact required. It appears also that some of the deposits have not been paid into the company's bank. Kacy appears to have kept part of the money collected.

The company also discovers that Kacy is in the process of setting up her own business, which will compete with Bat Pet Carriers Pty Ltd.

Required: In considering the facts above, make some legal observations on the following:

(a) Is Bat Pet Carriers Pty Ltd liable for Kacy's actions?

(b) On what basis in law would this be the case?

(c) Can the company claim they are not liable for Kacy because he has not followed instructions? Explain.

(d) Is Kacy liable to her employer for any of his actions? On what basis in law would he be liable?

(e) Has Kacy breached any law if she is planning to set up his business? Explain.