Gina is the finance manager for Euro Cars Pty Ltd,which has an account with Qantas for staff travel.In the past two months Gina has fraudulently billed her company for three first class flights for her personal use.Euro Cars has refused to pay the bill on the grounds that Qantas failed to check with senior management at Euro Cars before approving the flights.Which of the following statements best expresses the legal rights of the parties?
A) Qantas is not entitled to payment.It should reasonably have known that first class flights would require approval by senior management.
B) Qantas is entitled to payment but it only has rights against Gina.
C) Qantas is entitled to payment.It reasonably believed that a finance manager would have the authority to book first class flights.
D) Qantas and Euro Cars are both at fault.They are obliged to share the cost of the flights and any legal action against Gina.
Correct Answer:
Verified
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