Ernesto is a director of Fine Art Dealers,Inc. Ernesto is trained in art valuation. Fine Art makes several purchases in which it pays too much for artwork. Ernesto approves all the transactions without reading the details. Ernesto is most likely liable for breach of

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Ernesto, as a director, has a duty of care towards the company and its shareholders. This duty requires him to act in good faith and with the same care that a reasonably prudent person would use in similar circumstances. By approving transactions without reading the details and allowing purchases to be made at higher prices, Ernesto breached his duty of care.

Ernesto Is a Director of Fine Art Dealers,Inc