Gerhardt Is the President of the Pacer Bicycle Company

Gerhardt is the president of the Pacer Bicycle Company. He also serves as a director of the Flexible Tire Company. It occurs to Gerhardt that both companies could benefit from a contract in which Flexible agrees to supply Pacer with tires for its bicycles. If Gerhardt wishes to negotiate a contract between Pacer and Flexible, which of the following is correct?

A) The contract will be void as a conflict of interest.
B) Under the RMBCA, the contract is permitted if it is fair and reasonable to both corporations, or Gerhardt fully discloses all information relating to the transaction and the contract is approved by either the board of disinterested directors or the shareholders.
C) The contract is a clear conflict of interest and will be avoidable by either company even with disclosure.
D) Both t he contract will be void as a conflict of interest  and t he contract is a clear conflict of interest and will be avoidable by either company even with disclosure.