Has sally usurped a corporate opportunity


Problem: Mercedes and Mustang Sally started an air taxi service in Grand Rapid under the name Checker Cab, Inc. Sally was approached by a group of travel agents who were interested in hiring an air charter business to take Auto-Executives on vacation. Sally formed Auto Charter Co. and was its sole owner. On behalf of Auto Charter, she entered into a contract with the travel agents. Sally concealed her negotiations from Mercedes, even though she used Checker Cab working time, staff, money, and facilities. When Mercedes discovered this and confronted Sally, she defended herself by claiming that Checker Cab couldn't afford to enter into a contract with the travel agents. Has Sally usurped a corporate opportunity? a. No because Checker Cab could not afford to enter into the contract. b. No, because Sally is entitled to be an independent businessperson. Just because she is co-owner of one business with Mercedes, doesn't mean they are tied together for every future business venture. c. Yes, because the travel agents wanted to enter into a contract with Checker Cab and not with Auto Charter Co. d. Yes, because the opportunity came as a result of his business, Checker Cab, Inc., and belonged to Checker

 

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