William Gurtler was president and a board member of Unichem Corp., which produced and sold chemical laundry products. While president of Unichem, he encouraged his plant manager to leave to join a rival business, which Gurtler was going to join in the near future. Moreover, Gurtler sold Unichem products to his son, G. B. Gurtler, at a figure substantially below their normal price and on credit even though G. B. had no credit history. Gurtler made the sales with full knowledge that G. B. was going to start a rival business. Also at that time, Gurtler was aware that his wife was soliciting Unichem employees to join the new Gurtler Chemical Co., and he helped her design Gurtler’s label so that it would look like Unichem’s. Gurtler guaranteed a $100,000 bank loan for the new Gurtler Chemical Co. with funds to be disbursed after he left Unichem. One month later, He became president of Gurtler Chemical Co. Unichem sued Gurtler for breach of fiduciary duty and for the loss of profits that resulted. Gurtler contended that his sales to G. B. guaranteed needed revenue to Unichem and constituted a sound business decision that should be applauded and that was protected under the business judgment rule. Decide. Are any ethical principles applicable to this case? [Unichem Corp. v. Gurtler, 498 N.E.2d 724 (Ill. App.)]
Answer to relevant QuestionsWillingham proposed to obtain an investment property for the Tschiras at a "fair market price," lease it back from them, and pay the Tschiras a guaranteed return through a management contract. Using a shell corporation, The ...Tri County Truck & Diesel borrowed $165,000 from Security State Bank and pledged its inventory as security for the loan. In addition, Fred and Randelle Burk agreed to act as sureties for the loan. Tri County defaulted on the ...Explain how Twitter, Facebook, and LinkedIn have resulted in the development of new laws and precedent.Gladys Mensing and other patients took the generic version of metoclopramide over a long period a time, which resulted in serious neurological damage. Ms. Mensing and others filed suit against the generic manufacturers under ...Sony and others own the copyrights and exclusive licenses to their various sound recordings. Without permission, 40 unidentified individuals (called Does) used "Fast Track," an online media distribution system-or "peer to ...
Post your question