John knows that The Franklin Enterprises Partnership,in which John is a partner,is interested in purchasing a particular tract of land for a business location.Can John lawfully have his aunt buy the land,so that she may resell the land to Franklin Partnership?
A)No,it violates John's duty of care.
B)Yes,assuming the price to Franklin was a fair market price.
C)No,it violates John's duty of loyalty.
D)Yes,the aunt is not a Franklin partner and has no loyalty to it.

Question

Quizplus · Accepted Answer

John has a duty of loyalty to his partnership, which means he must act in the best interest of the partnership and cannot engage in self-dealing. By having his aunt purchase the land and then resell it to the partnership, John would be using his position to benefit himself, which violates his duty of loyalty.

John Knows That the Franklin Enterprises Partnership,in Which John Is