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Stone Entered into an Agreement with Star Alarms Inc, a Corporation

Question 65

Multiple Choice

Stone entered into an agreement with Star Alarms Inc, a corporation that sells alarm systems for personal residences, under which he would act as an agent for Star to find customers for Star's alarm systems.In the course of his work for Star, Stone learns quite a bit about alarm systems.A friend offers to sell him an alarm system business for commercial buildings, a segment of the market that Star has never pursued.Stone decides that he would like to buy the business.Which of the following is TRUE? Stone's fiduciary duty requires that he


A) compete fairly with Star.
B) refrain from using information from Star except if it will help his business.
C) balance the interests of Star against his own self-interest.
D) advise Star about this business opportunity only after he has bought the new alarm system.
E) tell Star about this opportunity, only pursue this opportunity if Star rejects it with the knowledge that he will pursue it, and keep the information of Star confidential including not using it for his business unless Star consents.

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