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Betty Is a Director of the Yazula Corporation

Question 105

Multiple Choice

Betty is a director of the Yazula Corporation.Yazula wants to buy a tract of land on which to build a new factory.Betty owns such a tract of land,and sells it to Yazula without disclosing to Yazula that she owns the land.Betty is paid the fair market value of the land.How is Betty's action best described?


A) Betty has violated the duty prohibiting self-dealing.
B) Betty has violated the duty prohibiting usurping a corporate opportunity.
C) Betty has violated the duty prohibiting competition with the corporation.
D) Betty has violated the duty prohibiting insider trading.
E) Betty has not violated any duty.

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