Linda,a manager and a currency trader for United Traders,has specific instructions from the CEO not to take a position on any currency in excess of $1 million.Linda sees what she believes to be a sure thing and takes a $20 million position.Unfortunately,the transaction goes bad and costs United $60 million.Does Linda have any liability to United?

Question

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Linda had specific instructions from the CEO to not take a position on any currency in excess of $1 million. By taking a $20 million position, Linda violated these instructions and breached her duty to the company. As a result, she is liable for the company's loss. The fact that the transaction went bad and cost United $60 million reinforces the severity of Linda's breach of duty.

Linda,a Manager and a Currency Trader for United Traders,has Specific