Jameson works for Fishy-Mart Corporation, a chain of superstores that sells large quantities of seafood. His job is to locate future sites for Fishy-Mart stores. Jameson finds a piece of real estate near a coastline that would make a great site for a Fishy-Mart store. He asks his friend to purchase the property from its current owner and has a secret agreement with his friend to split the profits when he sells the property to Fishy-Mart. Jameson, without disclosing his interest in the property, recommends the site to Fishy-Mart, which then purchases the property from Jameson's friend. The friend splits the profits with Jameson. What breach of the duty of loyalty has Jameson committed?

Question

Quizplus · Accepted Answer

Self-dealing occurs when a corporate officer or director uses their position to benefit themselves financially, without the knowledge or consent of the corporation. In this case, Jameson used his position to recommend a property that he had a secret interest in, without disclosing his interest to Fishy-Mart. This is a clear breach of the duty of loyalty, as Jameson put his own financial interests ahead of the interests of the corporation.

Jameson Works for Fishy-Mart Corporation, a Chain of Superstores That