Question 1 Wombat Pty Ltd specialises in digging underground shelters for protection from bush fires. Sam is the senior manager of Wombat Pty Ltd. and is in charge of purchasing all raw materials on behalf of the company. Australian Building Company Pty Ltd (ABC) often supplies raw materials to Wombat. Sam approaches the directors of ABC with a suggestion that he will arrange for ABC to be awarded a large new contract for the supply of materials to Wombat if ABC agrees to build him (Sam) a house at a heavily discounted price. The ABC directors agree to the offer. After a short time, the Directors of Wombat realise the cost of the raw materials from ABC is very high compared to the normal market price. After some investigations they discover the relationship between Sam and ABC. The Directors of Wombat want to know if Sam is liable for the cost to the company of the purchase of the overpriced raw materials
Question 1
Wombat Pty Ltd specialises in digging underground shelters for protection from bush fires.
Sam is the senior manager of Wombat Pty Ltd. and is in charge of purchasing all raw
materials on behalf of the company.
Australian Building Company Pty Ltd (ABC) often supplies raw materials to Wombat. Sam
approaches the directors of ABC with a suggestion that he will arrange for ABC to be
awarded a large new contract for the supply of materials to Wombat if ABC agrees to build
him (Sam) a house at a heavily discounted price. The ABC directors agree to the offer.
After a short time, the Directors of Wombat realise the cost of the raw materials from ABC is
very high compared to the normal market price. After some investigations they discover the
relationship between Sam and ABC.
The Directors of Wombat want to know if Sam is liable for the cost to the company of the
purchase of the overpriced raw materials
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