Helen works as the vice president of Gotspeed Corporation,a company that develops and sells sports shoes.Nestor,a home-based shoemaker,meets Helen privately in order to present a model for a more cost-efficient and durable shoe.Instead of taking the idea to Gotspeed's board of directors,Helen pays Nestor's asking price and purchases the Anklator model for herself.Helen leaves Gotspeed Corporation and forms her own company that manufactures and markets the Anklator shoe models.What breach of the duty of loyalty has Helen committed here?

Question

Quizplus · Accepted Answer

Helen has breached the duty of loyalty by usurping a corporate opportunity. As the Vice President of Gotspeed Corporation, any opportunity relating to the corporation's business should be presented to the board of directors, and it is not acceptable to take it for personal gain. By purchasing the Anklator shoe model for herself and using it to start her own company, Helen has deprived Gotspeed Corporation of the chance to make a profitable deal.

Helen Works as the Vice President of Gotspeed Corporation,a Company