Question

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

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.

Step-by-step 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.