Jones is a director of Abbott Ltd (Abbott), a large public company. At the board meeting last week, he informs the board that a car dealer friend of his will supply the new fleet of company cars at a price significantly below the cost of other competing dealers. From their inquiries of other dealers, the board knows this to be true. In the interests of full disclosure, Jones also says: Whether I like it or not, my friend will be giving me a new car worth over $50,000 if Abbott buys its fleet from him.

The board, after considering the prices available from competing dealers, now proposes buying from Jones friend because the overall cost of the car fleet will be significantly less.

Is it legal for Jones to keep the car? Advise Jones.