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Business Organizations Keyed to Chasalow, 3rd Ed.
General Automotive Manufacturing Co. v. Singer
Citation:
19 Wis.2d 528, 120 N.W.2d 659 (1963)Facts
Singer was hired as the general manager of General Automotive Manufacturing Company in March 1953 under a written contract that was eventually extended indefinitely until May 1959. His duties included soliciting and procuring machine-shop work for the company. Singer was highly successful in attracting orders due to his reputation in the trade and was valuable in bolstering the company’s credit. Over time, Singer began receiving orders that he unilaterally determined could not be fulfilled by General Automotive due to equipment limitations or pricing issues. Instead of informing General Automotive about these orders or returning them to customers, Singer quoted prices to customers, subcontracted the work to other machine shops at lower prices, and kept the difference as profit. Singer eventually established his own business as a “manufacturer’s agent and consultant” while still employed by General Automotive, without disclosing this activity to his employer.
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