Final answer:
L should stop buying and reselling the suits, seek legal advice, and prioritize the company's best interests.
Step-by-step explanation:
In this situation, L should stop buying and reselling the suits from the store. As a director of S Inc., L has a fiduciary duty to act in the best interest of the company and its shareholders. By buying suits at wholesale and reselling them for a profit, L may be in violation of his duty and could be seen as competing with the company, which is why C and M are upset.
Seeking legal advice would also be a good step for L to take. Consulting with a lawyer will help L better understand his responsibilities as a director and any potential legal implications of his actions. The lawyer can provide guidance on the best course of action for L moving forward.
Selling the suits to C and M at cost price would not resolve the issue, as it may still be seen as an unethical conflict of interest. It is important for L to prioritize the best interests of the company and avoid engaging in any activities that could be perceived as self-dealing.