Why Can an Agent Not Take an Opportunity Meant for the Principal

question 11

Essay

Why can an agent not take an opportunity meant for the principal? When is an agent permitted to take such an opportunity? Give an illustration depicting an agent's violation of his or her duty of loyalty.

---

Definitions:

Prospective Competitive Advantage

The potential for a firm to achieve a future position where it outperforms rivals in efficiency, quality, innovation, or customer service.

Trade Dress Infringement

A legal violation that occurs when one company's product design or packaging is so similar to another's that it could confuse consumers.

False Advertising Claims

Legal accusations that involve the dissemination of misleading, deceptive, or false statements in advertising to promote the sale of goods or services.

Passing-Off Claims

Legal actions taken against individuals or companies that misrepresent their goods or services as those of another, causing confusion or deception.