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Stone Entered into an Agreement with Star Alarms Inc, a Corporation

Question 16

Multiple Choice

Stone entered into an agreement with Star Alarms Inc, a corporation that sells alarm systems for personal residences, under which he would act as an agent for Star to find customers for Star's alarm systems. In the course of his work for Star, Stone learns quite a bit about alarm systems. A friend offers to sell him an alarm system business for commercial buildings, a segment of the market that Star has never pursued. Stone decides that he would like to buy the business. Which of the following is TRUE? Stone's fiduciary duty requires that he


A) advise Star of this opportunity.
B) act in the best interests of Star.
C) refrain from competing with Star.
D) refrain from using information from Star for his own benefit.
E) all of the above

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