A manager provides a favourable reference about a past employee even though that employee was terminated from the company for stealing; this would be an example of negligent misrepresentation if that employee then went on to steal from the new employer as well.

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Negligent misrepresentation occurs when false information is given without due care and results in harm to another party. In this scenario, the manager provided a favourable reference about an employee who was terminated for stealing, which could be considered false information. If the employee is then hired by a new company and steals again, the new employer could take legal action against the manager for negligent misrepresentation.

A Manager Provides a Favourable Reference About a Past Employee