Jameson works for fishy-mart corporation, a chain of superstores that sells large quantities of seafood. his job is to locate future sites for fishy-mart stores. jameson finds a piece of real estate near a coastline that would make a great site for a fishy-mart store. he asks his friend to purchase the property from its current owner and has a secret agreement with his friend to split the profits when he sells the property to fishy-mart. jameson, without disclosing his interest in the property, recommends the site to fishy-mart, which then purchases the property from jameson's friend. the friend splits the profits with jameson. what breach of the duty of loyalty has jameson committed

Question

Business

Emmett Caldwell

15 October, 04:59

Jameson works for fishy-mart corporation, a chain of superstores that sells large quantities of seafood. his job is to locate future sites for fishy-mart stores. jameson finds a piece of real estate near a coastline that would make a great site for a fishy-mart store. he asks his friend to purchase the property from its current owner and has a secret agreement with his friend to split the profits when he sells the property to fishy-mart. jameson, without disclosing his interest in the property, recommends the site to fishy-mart, which then purchases the property from jameson's friend. the friend splits the profits with jameson. what breach of the duty of loyalty has jameson committed

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Answers (1)

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Glenn Cruz · Answer 1

The options are given below:

A) usurping a corporate opportunity

B) self-dealing

C) competing with the corporation

D) proxy

The correct option is B. Self-dealing.

Explanation:

Self-dealing is a phenomenon whereby a fiduciary acts in his/her own best interests in a transaction rather than in the best interest of his/her clients. It is a representation of a conflict of interest and is considered an illegal act, which can lead to litigation, penalties, and termination of employment of those involved.

An example of self-dealing is given in the question above, another example is when an officer in a company would only award a contract to a vendor based on the condition that the vendor must provide an internship to the officer's son.

In summary therefore, self-dealing generally involves an individual benefiting - or attempting to benefit - from a transaction that is being executed on behalf of another party.