Walter owns an art gallery.Susan works for Walter selling paintings.Walter fully directs and controls her work, sets her hours, and pays her an hourly salary as well as a commission.Linda comes to the gallery to buy a painting.Susan, however, tells Linda that her mother has a beautiful painting which she needs to sell, and that if Linda will meet her after hours, she will give Linda an excellent deal.Linda meets Susan after work and ends up buying the painting belonging to Susan's mother.The next day, Susan is working in the gallery moving a large painting.However, she is intoxicated and off-balance, and in a grossly negligently manner drops the large painting on the foot of Tom, another customer, cutting it badly.While all are waiting for the ambulance to come for Tom, Linda storms onto the gallery complaining that the painting she purchased from Susan's mother is no good.Walter becomes angry and fires Susan on the spot based on her intoxicated condition and the fact that she arranged for the sale of her mother's painting.Susan complains that she has been an excellent employee and that Walter has no reason to terminate her.

3.Did Susan breach any fiduciary duties owed to Walter?If so, which one(s)?Explain your answer.

A.Yes, only the duty of loyalty

B.Yes, only the duty of care

C. Yes, both the duty of loyalty and the duty of care

D.No

Barbara is the president of Big Corporation.Big Corporation is looking for land on which to build a new facility.Barbara locates suitable land, but purchases it for herself with plans to sell it at a profit at a later date.Rick, the majority shareholder of Big Corporation hears about Barbara's purchase and complains to her about it.She tells Rick that she viewed and purchased the land on her own time and that she did not breach any duties owed to the corporation.Rick tells her that she should reconsider and that he plans to discuss the matter with the rest of the board.

4.Did Barbara violate any duties owed to the corporation?If so, which one(s)?Explain your answer.

A.Yes, by buying the land for herself without disclosure to the corporation, she violated the corporate opportunity doctrine.

B.Yes, by buying the land for herself without disclosure to the corporation, she violated the duty of responsible decision making.

C.Only if the land involved was worth over $50,000 did she violate any duties because any smaller amount would be considered de minimus.

D.No.