Ethics Question

Duty of Loyalty is a term used in corporation law to describe a fiduciaries' "conflicts of interest and requires fiduciaries to put the corporation's interests ahead of their own."[1] "Corporate fiduciaries breach their duty of loyalty when they divert corporate assets, opportunities, or information for personal gain."[1]

It is generally acceptable if a director makes a decision for the corporation that profits both him and the corporation. The duty of loyalty is breached when the director puts their interest in front of that of the corporation.

Question 1I feel that the paralegal acted in a very professional way even though at the beginning he mentioned that he could fill out forms all day, inferring that he wouldn't mind being in her company.  That comment either went over her head or it was ignored on purpose.  She cut the conversation short and he made his exit, no conflict of interest existed.  In the second scenario, the client stopped by and offered her flowers, putting her in an uncomfortable position. She did not compromise her professional judgment by getting all mushy about it.  She was very forthwith by stating that it would stay out to share with the office. When the question about having dinner with him came up she was very uncomfortable, she hesitated, not expecting the client to make such a gesture. She did not violate the Conflict of interest clause.  What I would have done differently was to mention to the client that “I  am not allowed to accept gift or engage in any intimate relationship with clients.  This is professional relationship and I do not want to impair my ability to provide him with an unbiased representation or compromise the firm's ethical duties”.  After which I would mention the incident to the supervising attorney to cover myself.

Question 2Denny breached his fiduciary and ethical obligation for his own financial and personal gain. He owes his allegiance to his firm to protect their clients, not using their secrets for his...