Legal Environment 4th Edition by Jeffrey Beatty, Susan Samuelson

Exercise 5

Klinicki and Lundgren started an air taxi service in Berlin, Germany, under the name Berlinair, Inc. Lundgren was approached by a group of travel agents who were interested in hiring an air charter business to take German tourists on vacation to warmer climes. Lundgren formed Air Berlin Charter Co. (ABC) and was its sole owner. On behalf of ABC, he entered into an air charter contract with the Berlin travel agents. Lundgren concealed his negotiations from Klinicki, even though he used Berlinair working time, staff, money, and facilities. Lundgren defended his behavior on the grounds that Berlinair could not afford to enter into a contract with the travel agents. Has Lundgren violated the corporate opportunity doctrine?