Asked by Darcey Borellini on Jun 06, 2024
Verified
Steven is a manufacturer's representative for Incell Corporation. One day he receives a big-screen television as a gift from one of the clients he contacts on behalf of Incell.
A) Steven must account to Incell for the gift he has received.
B) The big-screen television belongs to Incell rather than to Steven.
C) If he keeps the TV without telling Incell, he will have breached his fiduciary duty.
D) All of these are correct.
Fiduciary Duty
A legal obligation of one party to act in the best interest of another when managing another person’s assets, involving a relationship of trust and confidence.
- Pinpoint scenarios indicative of an agent failing to uphold their fiduciary obligations.
- Identify the legal obligations agents owe to their principals, including duties of loyalty, accounting, and information.
Verified Answer
EA
ernie arandaJun 12, 2024
Final Answer :
D
Explanation :
All options are correct because they reflect the principles of fiduciary duty and the obligations of an agent to their principal. As a representative of Incell Corporation, Steven has a duty to act in the best interests of Incell, which includes reporting gifts received in the course of his duties, as these could be seen as attempts to influence his actions on behalf of the company.
Learning Objectives
- Pinpoint scenarios indicative of an agent failing to uphold their fiduciary obligations.
- Identify the legal obligations agents owe to their principals, including duties of loyalty, accounting, and information.