Issue: Did Guth breach the duty of loyalty to Loft Inc for using loft’s Pepsi cola trademark and formula to produce Pepsi cola syrup, without Loft Inc. consent ?
Rule:
The duty of loyalty is a duty of loyalty and fidelity owed by an agent to principal.
Usurpation of a corporate opportunity is when directors take away benefits and opportunities that the corporations can benefit from.
Conflict of interest is when the director prefers their own interest instead of the corporations.
Application:
Guth argues that he did not breach the duty of loyalty to Loft for using Pepsi cola trademark and formula to produce Pepsi cola syrup because he didn’t need anyone's permission since he was the president and general manager of the company. Guth argues
Rule:
The duty of loyalty is a duty of loyalty and fidelity owed by an agent to principal.
Usurpation of a corporate opportunity is when directors take away benefits and opportunities that the corporations can benefit from.
Conflict of interest is when the director prefers their own interest instead of the corporations.
Application:
Guth argues that he did not breach the duty of loyalty to Loft for using Pepsi cola trademark and formula to produce Pepsi cola syrup because he didn’t need anyone's permission since he was the president and general manager of the company. Guth argues