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

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Quizplus · Accepted Answer

As an agent for Star, Stone owes a fiduciary duty to act in the best interests of Star and avoid any conflicts of interest. If he decides to pursue his friend's alarm system business, it could be seen as competing with Star's business, which would breach his fiduciary duty. Therefore, the best option is for Stone to disclose the opportunity to Star and seek their consent before pursuing it. He should keep the information confidential and not use it for his own benefit unless Star consents to it. This way, Stone can balance the interests of both Star and himself while avoiding any potential conflicts of interest.

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