total points: -/150\nalberto owned 33 percent of the shares of group of fishermen inc. group of fishermen…

total points: -/150\nalberto owned 33 percent of the shares of group of fishermen inc. group of fishermen had a particularly bad year on the ocean and as a result was looking to sell some of its fishing boat fleet. alberto arranges to sell ten boats to fishermens friends llc at a substantial discount. after the sale has been completed, the rest of the board of directors learns that alberto purchased 75 percent of fishermens friends. in what way has alberto violated the business judgment rule?\nhe did not breach the duty of self - dealing.\nhe has breached the corporate opportunity doctrine.\nhe has breached the duty of corporate respect.\nhe has breached the duty of openness.

total points: -/150\nalberto owned 33 percent of the shares of group of fishermen inc. group of fishermen had a particularly bad year on the ocean and as a result was looking to sell some of its fishing boat fleet. alberto arranges to sell ten boats to fishermens friends llc at a substantial discount. after the sale has been completed, the rest of the board of directors learns that alberto purchased 75 percent of fishermens friends. in what way has alberto violated the business judgment rule?\nhe did not breach the duty of self - dealing.\nhe has breached the corporate opportunity doctrine.\nhe has breached the duty of corporate respect.\nhe has breached the duty of openness.

Answer

Brief Explanations:

Alberto, as a significant shareholder of Group of Fishermen Inc., sold company assets (boats) at a discount to a company he largely - owns (Fishermen's Friends). This is self - dealing as he is using his position for personal gain. The business judgment rule requires directors and officers to act in good faith, with due care, and in the best interests of the corporation. Self - dealing violates the duty of loyalty.

Answer:

He has breached the duty of self - dealing.