Ronald Inc. is a corporation formed to grow wholesale floral products to sell in smaller retail locations throughout the region. Adjacent to Ronald’s operations was a ten-acre tract of undeveloped land that came up for sale. The land was similar to the land Ronald on which was already conducting operations.

Cindy, a member of the Board of Directors of Ronald Inc., personally purchased the adjacent property from its owner, William, but only after William had refused to sell the property to Ronald when Ronald representatives made an offer to purchase. William stated he did not want to do business with Ronald because he did not care for the CEO, Paul.

Without offering Ronald the opportunity to purchase the property, Cindy then sold the property to a real estate developer for a $60,000 personal profit.

If Cindy had sold the property to Ronald and then Ronald had sold the property to the developer, then Ronald could have profited.

Alternatively, if Cindy had sold the property to Ronald, then Ronald could have chosen to expand its operations.

Paul has learned about these events and is unhappy. Paul has informed the rest of the Board of Directors for Ronald about these events. They are concerned about Cindy’s actions.

1. Discuss, analyze and evaluate the LEGAL claims that these events might raise.

2. Discuss, analyze and evaluate the ETHICAL concerns that these events might raise.

Should your response require additional information, please identify this information and indicate how this information influences your analysis.