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2 . Bowen, Garrison, Smith & Underwood, Inc., manufactures specialized electronic equipment. BGSU requires quality electronic components in its products. William Smith is the Director

2. Bowen, Garrison, Smith & Underwood, Inc., manufactures specialized electronic equipment. BGSU requires quality electronic components in its products. William Smith is the Director of Purchasing for BGSU. Christopher Rockingham is Smiths brother-in-law, and works as a salesperson for Toledo Corp., a manufacturer of electronic components like those used by BGSU. Smiths sister who is also Rockinghams wife is very ill, and needs an expensive operation which will cost the Rockinghams a great deal of money, even after insurance. Smith is considering purchasing equipment from Toledo Corp. for the first time. Rockingham would receive a large commission. The equipment produced by Toledo Corp. is adequate for BGSUs products. However, in purchasing equipment from Toledo Corp., Smith would be replacing a long time, and reliable supplier of the same components. Does Smith have a Conflict of Interest? If so, what should Smith do? Explain your answer.

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