Byron bought out the entire inventory of 1,000 Sony LCD Television sets from the local K-Mart store that was being closed, for $150 each. Byron hires Lorenzo as his agent, and give him authority to negotiate and sign a sales contract with Costco Corporation for the sale of all of these Sony TV sets for the highest amount possible, hopefully for about $300 per set. Lorenzo is to get 5% commission on the sale. The Costco buyer makes this offer to Lorenzo: We will pay you (Lorenzo) a $10,000 under-the-table bonus if you let us buy the entire inventory of Sony TVs for $250 each. What obligation does Lorenzo have to Byron?

a. Lorenzo does not have any obligations to Byron he can just sign an acceptance of Costcos offer of $250 per unit on behalf of Byron, and take the bonus without telling Byron.

b. Lorenzo has an obligation just to share the information on Costcos offer to buy the TVs for $250, and does not have to reveal the bonus that was offered to him.

c. Lorenzo has an obligation to share the information on the entire offer (including the $10,000 bonus) to his principal Byron.