Unit 2 – Discussion Board Business Law I
For this Discussion Board, complete the following:
This week you will learn about fiduciary duty. Fiduciary duty is the legal obligation of one person or party to act in the best interest of another person or party. A common example of fiduciary duty is when top management of an organization is acting in the best interest of the shareholders who own the organization.
Charles is the CEO of a car company. Charles knows that the car has a defect and should be recalled. If Charles recalls the car the company will go bankrupt. Does Charles have a fiduciary duty to tell the car company’s shareholders? Why or why not?
Discuss if Charles have a fiduciary duty to tell the car company’s shareholders?
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