Bryan is a purchaser for Ace Widgets. Bryans brother-in-law is a salesperson for Niche Electronics, one of Aces largest suppliers. Bryan told his supervisor about the relationship, and she approved his ordering of supplies from his brother-in-law as long as the purchases were reviewed by a senior manager. Bryan did not receive any favor or money from his brother-in- law in return for the sales. A year after Bryan discussed the situation with his supervisor, Aces management discovers that another supplier offers the same parts as Niche Electronics but at cheaper prices. Ace Widgets is considering suing Bryan for conflict of interest. Which of the following is the most accurate statement about Aces chances of success?

1. Aces chances are good because it is clear that Bryan had a conflict of interest in dealing with his brother-in-law.

2. Aces chances are good because it could have gotten the supplies at a lower price.

3. Aces chances are poor because Bryan did not actually receive any money from his brother-in-law for sending him business.

4. Aces chances are poor because the company was aware of the situation and it allowed Bryan to do business with his brother-in-laws company despite the relationship.