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“A question of Ethics:International business machines corp. (IBM) hired Niels Jensen in 2000 as a software sales representative. in 2001, IBM presented a new software sales incentive plan at a conference for its sales employees. a brochure given to the attendees stated, “there are no caps to your earning; the more you sell, the more earning for you”. the brochure outlined how the plan worked and referred the employees to the sales incentive section of IBM’s corporate intranet for more details. Jensen was given a quota letter that said he would be paid $75,000 as a base salary and, if he attained his quota, an additional $75,000 as incentive pay. in September, Jensen closed a deal with the U.S. Department of the Treasury’s internal revenue worth more than $24 million to IBM. Relying on the Sales incentive plan brochure, Jensen estimated his commission to be $2.6 million. IBM paid him less that $500,000, however, Jensen filed a suit in a federal district court against IBM, contending that the sales incentive plan brochure and quota letter constituted a unilateral offer that become a binding contract when Jensen closed the sale. would it be fair to the employer in this case to hold that the Sales incentive plan brochure and quota letter created a unilateral contract if IBM did not intend to create such a contract? would it be fair to the employee to hold that no contract was created? “
It would be extremely unfair to the employee if the firm claims that no contract has beenmade. Moreover a unilateral contract has been created in this case in the form of the salesbrochure and so…
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