Jack is an insurance sales representative at Fortress Insurance Co. Ltd who has been there for several years. In his written contract, he is employed to sell only motor vehicle insurance. He wears a Fortress Insurance badge that states that he is a motor vehicle insurance sales representative.

A customer, Andrew, who had requested that Jack renew his insurance policy was now facing a law suit as the insurance policy was not renewed by Jack and he met in a bad motor vehicle accident which left him and one of his passengers nursing serious injuries. Jack had also charged Andrew $150,000.00 for his premium which was really $100,000.00. He asked Andrew to make the cheque payable to him and not to the insurance company which he then cashed and got a manager's cheque for the insurance company in the sum of $100,000.00 and pocketed the rest for himself. The Insurance Company has found out that he was also selling insurance policies to their customers for a rival insurance company. They have confronted him with all this information.

The General Manager for Fortress Insurance Company, in a meeting with Jack, informed him that Andrew had contacted them about the non-renewal of the motor vehicle insurance coverage and Andrew is now suing the company. Jack got upset and told the General Manager an expletive and was fired with immediate effect. The Human Resource Manager gives Jack an official letter of dismissal the same day.

The next day, October 26, Jack shows up for work at Fortress Insurance Co Ltd. in his uniform with his Fortress Insurance badge attached and starts to see customers according to his usual daily routine. The security guards and other members of staff are not aware that Jack is fired.

A particular customer, Richard, sees Jack who hands him an insurance contract. Richard signs the new insurance contract for his motor vehicle and crashes the vehicle the next day. Richard then tries to claim on his new policy and is told by officials of the Fortress Insurance Company that his policy is void because Jack was not an employee of the Insurance Company. Richard feels he has been given a 'raw deal' and threatens to sue the Insurance Company.

Advise Fortress Insurance Company on all the matters arising. (40 marks)