1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Wewaii [24]
3 years ago
5

Ethics Lawrence Gaffney was the president and general manager of Ideal Tape Company (Ideal). Ideal, which was a subsidiary of Ch

elsea Industries, Inc. (Chelsea), was engaged in the business of manufacturing pressuresensitive tape. Gaffney recruited three other Ideal executives to join him in starting a tape manufacturing business. The four men remained at Ideal for the two years it took them to plan the new enterprise. During this time, they used their positions at Ideal to travel around the country to gather business ideas, recruit potential customers, and purchase equipment for their business. At no time did they reveal to Chelsea their intention to open a competing business. The new business was incorporated as Action Manufacturing Company (Action). When executives at Chelsea discovered the existence of the new venture, Gaffney and the others resigned from Chelsea. Chelsea sued Gaffney and the others to recover damages. Chelsea Industries, Inc. v. Gaffney, 389 Mass. 1, 449 N.E.2d 320, Web 1983 Mass. Lexis 1413 (Supreme Judicial Court of Massachusetts)
1. What is the fiduciary duty of loyalty?
2. Did Gaffney act ethically in this case?
3. Did Gaffney and his partners breach their fiduciary duty of loyalty?
Business
1 answer:
tangare [24]3 years ago
6 0

Answer:

Fiduciary Duty

1. The two main duties of company directors and top managers are the duty of care and the fiduciary duty of loyalty.  The fiduciary duty of loyalty requires that managers act in the best economic interest of the company without engaging in activities that give rise to personal economic conflict.

2. Gaffney did not act ethically in this case.  He did not avoid conflict of interest as an officer of Chelsea Corporation.

3. Gaffney and his partners clearly breached their fiduciary duty of loyalty.  Within the two years of their employment at Ideal Tape Company, they acted in their personal interest.  They were using company resources to conduct researches, setting up a rival company to compete with Ideal.

Explanation:

When a fiduciary duty of loyalty is breached, the corporation can  damages.  The court will usually base the damages on the salaries of the officer who breached his fiduciary duty within the application period.

You might be interested in
A supervisory body, a source of public good, and a body responsible for reallocating income are examples of _____.
olchik [2.2K]

Answer:

roles of government

Explanation:

The government uses part of the taxes it collects to provide public goods such as goods as education, healthcare, and infrastructure. In mixed economies such as the US, the government's main role in the economy is to ensure fair competition among suppliers and protect consumers' and workers' rights.

The government has established several bodies and mandated them to carry out the regulatory functions. Different agencies regulate different trade sectors such as communication, drugs and medicines, weights and measures, employees' safety and health, etc.

5 0
3 years ago
Which component of table setting includes knives?
Keith_Richards [23]

Answer:

Steelware I think

Explanation:

7 0
3 years ago
The best indication of a property's value comes from:
Andrej [43]
I believe the correct answer is option C. The best indication of a property's value comes from recently sold properties. A property's value would be higher when the place is a transportation access point and around it many infrastructure are present or it is a tourist spot.
8 0
3 years ago
A common size analysis requires the representation of financial statement data relative to a single financial statement item (or
MArishka [77]

Answer:

The correct answer is letter "C": Total assets.

Explanation:

Total assets represent the total amount of assets that an individual or entity possesses to obtain a return from them. In accounting, it is obtained by subtracting the previous period total assets minus the current period total assets. They appear in the Balance Sheet of a company and is the baseline or common base item to which other line items are expressed.

7 0
4 years ago
Supply-side economics attempts to stimulate output and lower unemployment by
yawa3891 [41]

Supply-side economics attempts to stimulate output and lower unemployment by reducing taxes to stimulate investment and consumer spending.

<h3>What is supply-side economics?</h3>

Supply-side economics is a economics theory that focuses on the  supply of labour and goods. It postulates that taxes and benefits can be used as incentives to stimulate the economy.

Supply-side economics was introduced by Arthur Laffer and implemented by Pres. Ronald Reagan in the 1980s.

4 0
2 years ago
Other questions:
  • The Peach State Onion​ Company's onion-bagging machine was found to operate at mean​ = 25.05 pounds with a standard deviation of
    14·1 answer
  • Ken went to the store for his mother. He spent $2.37 on groceries. In addition, his mother said he could spend $0.35 on candy. W
    11·1 answer
  • A 480 item pencil and paper standardized test of 20 personality dimensions used in selecting managers, sales associates and lead
    13·1 answer
  • What is the best advice for concluding your presentation?
    13·1 answer
  • The payments made by a firm to repurchase shares of its outstanding stock from an individual investor in an attempt to eliminate
    7·1 answer
  • A student who works at a record store and plays in a rock band thinks for a minute about his own music-purchasing habits, and th
    6·1 answer
  • From April 2019 to July 2019​, business inventories decreased by $ 2034 billion. ​*Real-time data provided by Federal Reserve Ec
    14·1 answer
  • Cheyenne is a manager at her company. She listens to an employee, Enu, voice his opinion about a policy that he disagrees with.
    5·2 answers
  • A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $700. If the firm produced
    8·1 answer
  • Pick an organization (public or private) and then choose a particular type of COI that is associated with this type of organizat
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!