Requirements of the Offer. Technical ConsumerProducts, Inc. (TCP), makes and distributes energy-ecientlighting products. Emily Bahr was TCP’s district sales manager in Minnesota, North Dakota, and South Dakota whenthe company announced the details of a bonus plan. A districtsales manager who achieved 100 percent year-over-year salesgrowth and a 42 percent gross margin would earn 200 percentof his or her base salary as a bonus. TCP retained absolutediscretion to modify the plan. Bahr’s base salary was $42,500.Her final sales results for the year showed 113 percent yearover-year sales growth and a 42 percent gross margin. Sheanticipated a bonus of $85,945, but TCP could not a ord topay the bonuses as planned, and Bahr received only $34,229.In response to Bahr’s claim for breach of contract, TCP arguedthat the bonus plan was too indefinite to be an o er. Is TCPcorrect? Explain. [Bahr v. Technical Consumer Products, Inc.,601 Fed.Appx. 359 (6th Cir. 2015)] (See Agreement.)
Requirements of the Offer. Technical Consumer
Products, Inc. (TCP), makes and distributes energy-ecient
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. TCP retained absolute
discretion to modify the plan. Bahr’s base salary was $42,500.
Her final sales results for the year showed 113 percent yearover-year sales growth and a 42 percent gross margin. She
anticipated a bonus of $85,945, but TCP could not a ord 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 o er. Is TCP
correct? Explain. [Bahr v. Technical Consumer Products, Inc.,
601 Fed.Appx. 359 (6th Cir. 2015)] (See Agreement.)
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