Tesco Supermarkets Ltd v Nattrass

Facts

Tesco was charged under the Trade Descriptions Act 1968. A shop displayed a poster offering soap powder at a reduced price. An assistant refilled the shelf with full-price packets and the manager failed to check. The company said it had taken all reasonable precautions, and that the offence was due to the default of another person, the manager.

Issue

Is a branch manager the company, or another person?

Held

The manager was the hands, not the brains. The defence was available. Lord Reid held that the company is the board, the managing director, and other superior officers who speak and act as the company. The manager of one store in a large chain is not that person.

Principle

Identification is confined to the directing mind. A local manager's fault is not automatically the company's fault.

Why it matters

It is the leading case on when a company is criminally liable for an officer, and when it can blame that officer as another person.

For study only. By lanbuk.com. Always check current sources and consult a qualified professional.