Ernst is a director of Fine Art Dealers, Inc. Ernst is trained in art valuation. Fine Art makes several purchases in which it pays too much for artwork. Ernst approves all the transactions without reading the details. Ernst is most likely liable for breach of

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Ernst, as a director, has a duty of care to act in the best interest of the company and exercise reasonable care in his decision-making. By approving transactions without reading the details, he failed to meet this duty of care and could be held liable for any resulting losses.

Ernst Is a Director of Fine Art Dealers, Inc