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BUSINESS LAW 1

Question 2 Fruit Ltd. is a private company involved in the manufacture of dried fruit. The board of directors of Fruit Ltd. comprise of Dora, Deigo, Jael and Micha. In June 2020 unbeknown to the board, Dora enters into a contract with Healthy Choices Ltd., on behalf of Fruit Ltd., for the purchase of 5000 kilos of grapes at a price well above market price. Further in July 2020, the board of Fruit Ltd., discovered that Dora received a black Rolls Royce from Healthy Choices Ltd., for allegedly voting in Healthy Choices Ltd's. favour (and not in Fruit Ltd's favour) with regard to a lucrative contract. In August 2020, Micha is approached by Natural Foods Inc. to develop similar products for Natural Foods Inc's operations. Micha begins working with Natural Foods Inc on a parttime basis whilst still employed at Fruit Ltd. This is uncovered by the Board. Advise Fruit Ltd, on the implications of the above. 20 Marks