In 2011, Warren Buffett reluctantly (and belatedly) acknowledged that David Sokol violated Berkshire Hathaway’s insider trading rules to score a $3 million windfall profit on shares of U.S. chemicals maker Lubrizol, which rose by nearly a third after Berkshire Hathaway announced it would buy the company.

In a 500-750 word essay:

1. Review Sokol’s conduct as reported in the Reuters timeline and describe if and how you believe he may have violated the Berkshire Hathaway Code of Business Conduct and Ethics.

2. Review Sokol’s conduct as reported in the Reuters timeline and describe if and how you believe he may have violated the SEC prohibition against insider trading.

3. Review Sokol’s defense of his actions in the CNBC transcript located in topic materials and, in your own words, compare and contrast "unlawful behavior" and "unethical behavior."