Question

A potential conflict of interest exists when a given decision maker (D) and another person (P) are in the following situation: Select one: a. D has to exercise judgement in P's behalf. b. P may have to exercise judgement in D's behalf c. There are two correct answers; there also exists a conflict if D has to exercise judgement in P's behalf. d. both (a) and (b) e. both (b) and (c)

Answer 1

Answer:

The correct answer is option e. both (b=P may have to exercise judgement in D's behalf) and (c=there also exists a conflict if D has to exercise judgement in P's behalf).

Explanation:

Conflicts of interest are those situations in which the judgment of a subject, in relation to a primary interest for him or her, and the integrity of their actions, have to be unduly influenced by a secondary interest, which is often of economic or personal type. That is, a person incurs a conflict of interest when instead of complying with the right thing, he could guide his decisions or act for his own benefit or that of a third party.

Because of this definition we understand that P has a conflict of interest in excercising judment in D's behalf  but if P does that there may exist a conflict. Therefore P could refrain from giving a judgment, opinion or positioning in such a situation.