Reference no: EM132142510

Electronics Source Agency Ltd. was a manufacturers’ sales representative that operated branch offices in most major population centers across Canada. In 1995, the corporation hired Felix as its senior Sale Manager for a large metropolitan city, an important sales area of the corporation. At the time of hiring, Felix had advised the President of the corporation that he had extensive sales experience in the sale of electronics, and the previous year had incorporated his own corporation with a view to establishing an electronics sales agency similar to the President’s company, but had decided not to proceed with the project. Felix and the President had no further discussion of Felix’s corporation, and proceeded to negotiate a written agreement that provided Felix with an annual salary of $150,000 year. The agreement was for indefinite hiring, but provided that either the employer or Felix could terminate the agreement on 6 month’s notice. Felix was very successful in his position as Sales Manager of the Metropolitan office for his first year on the job, but during the second year, he discovered that a large U.S. electronic manufacturer was seeking a manufacturer’s representative for its products in Canada. Based on this information, Felix decided to contact the U.S. manufacturer with a view to becoming the manufacturer’s representative in Canada, not for his employer, but for his own corporation that was presently dormant. Using his employer’s computer, he prepared an extensive Power Point presentation, incorporating a great deal of market information concerning the Metropolitan sales area as well as the Canadian market as a whole. The presentation required a significant amount of time, and Felix remained home from work for a week on the pretence of being ill with the flu while he completed the presentation. When his presentation was ready for presentation to the U.S. Manufacturer, he contacted the company, and a date two weeks hence was set for his presentation. A week before the presentation was to be made, the President of Electronics Source Agency Ltd. was made aware of the intentions of Felix. Rather than confront Felix immediately, the President decided to wait and see if Felix would inform him of his intentions, but Felix did not, and the day before Felix was to make his presentation to the U.S. Manufacturer, the President confronted Felix, and demanded an explanation. Felix admitted that it was his intention to make the presentation on behalf of his own company, and explained that he intended to resign if the presentation was successful. The President then advised Felix that he was dismissed, effective immediately. Felix proceeded with his presentation to the U.S. Manufacturer, but it was unsuccessful. Felix then took legal action against his employer, claiming wrongful dismissal. Discuss the arguments that may be raised by Felix and Electronics Source Agency Ltd. Render a decision.