Gareth Thomas was a director of Middleton Manufacturing Inc. The company put out a call for bids from suppliers for a multimillion-dollar order of the raw materials needed for the coming year. Fiona Ferguson, Thomas's wife, owned and operated a small independent bookstore. Business was excellent, and she planned to expand, taking over the premises next door. A few days before the Middleton Board was due to make a decision on its contract, Ferguson was contacted by George Hammond, one of the suppliers who had submitted a bid to Middleton. Hammond offered Ferguson a loan of $30,000 at 2% interest, to be repaid over 10 years. "That'll give you room for a book or two!" he said. a) Does this loan create any legal problems for Thomas and if so, do they depend on whether Hammond's bid is the successful one?

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