Paul Backman is the head of the purchasing department for L. A. East, one of the “Baby Bells” that came into existence after the divestiture of AT&T. Mr. Backman and his department purchase everything for the company, from napkins to wires for equipment lines.

S. C. Rydman is an electronics firm and has been a major supplier for L. A. East since 1984. Rydman is also the cosponsor of an exhibit at Wonder World, a theme park in Florida.

Rydman’s vice president and CFO, Gunther Fromme, visited Mr. Backman in his office on April 3, 2004. Rydman had no bids pending at that time, and Mr. Fromme told Mr. Backman that he was there “for goodwill.” Mr. Fromme explained that Rydman had a block of rooms at Wonder World because of its exhibit there and that Mr. Backman and his group could use the rooms at any time, free of charge.

Should Mr. Backman and his employees use the block of rooms? Why or why not?