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Technical Consumer Products, Inc. Essay

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Technical Consumer Products, Inc (TCP) makes and distributes energy-efficient lighting products. Emily Bahr was TCP’s district sales manager in Minnesota, North Dakota, and South Dakota when the company announced the details of a bonus plan. A district sales manager who achieved 100 percent year-over-year sales growth and a 42 percent gross margin would earn 200 percent of his or her base salary as a bonus. Bahr’s base salary was $42,500. Her final sales result for the year showed 113 percent year-over-year sales and a 42% growth margin. She anticipated a bonus of $85,945, but TCP could not afford to pay the bonuses as planned, and Bahr received only $34,229. In response to Bahr’s claim for breach of contract, TCP argued that the bonus plan was too indefinite to be an offer. Issue: Is TCP correct? Explain. [Bahr v. Technical Consumer Products, Inc, 601 Fed.Appx. 359 (6th Cir. 2015)] Decision: Technical Consumer Products cannot, nor could or should any other company succeed with this argument that the bonus plan was too “indefinite.” Legal Reasons: From a legal standing, the company’s position is indefensible. Beginning with the position the company began to take, the company was aware of the salary each employee earned and therefore had to consider what a 200% bonus for each employee would look like before making the offer. Based on this fact alone, Bahr has every right to demand the full 200% bonus and take legal actions where the company fails to pay the full amount of

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