Question
Herbie is a director of the XYZ Corporation. XYZ Corporation is in the business of marketing new inventions. Lynn has just invented a new product
Herbie is a director of the XYZ Corporation. XYZ Corporation is in the business of marketing new inventions. Lynn has just invented a new product and wants to have it marketed by XYZ Corporation, so she shows and discusses the new product with Herbie. Herbie thinks the new product has the potential to generate huge profits, so Herbie suggests that he handle the marketing personally, leaving XYZ Corporation out of it. Herbie's action is best described as follows:
a.A violation of the duty prohibiting self-dealing.
b.A violation of the duty prohibiting competition with the corporation.
c.A violation of the duty prohibiting usurping a corporate opportunity.
d. A violation of the duty prohibiting insider trading.
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