Question

Alan, a corporate manager at DollarShopper Corp., decides he would like to pursue a business opportunity he knows DollarShopper would also be interested in. Under the corporate opportunity rule, Alan may:

1) pursue the business opportunity only if he offers it to other corporate managers and also allows them to pursue it.
2) never pursue the business opportunity as long as he is employed by DollarShopper.
3) pursue the business opportunity only if he first offers it to DollarShopper, and the corporation rejects it.
4) pursue the business opportunity without informing DollarShopper of it.

Answer 1

According to the corporate opportunity rule, Alan can only pursue the business opportunity after offering it to DollarShopper Corp., and if they reject it.

Step-by-step explanation:

Under the corporate opportunity rule, Alan, as a corporate manager at DollarShopper Corp., must adhere to certain fiduciary duties. One of these duties is the duty of loyalty, which prohibits Alan from exploiting a business opportunity that should belong to the corporation without first offering it to DollarShopper. The correct course of action Alan should take, according to this rule, is option 3: pursue the business opportunity only if he first offers it to DollarShopper, and the corporation rejects it. This ensures that the corporation's interests are not compromised by the personal interests of its managers.