Ben Small, a Sole Practitioner, Has Just Decided to Form

question 80

Multiple Choice

Ben Small, a sole practitioner, has just decided to form a law partnership with his lifetime friend, Harvey Steptoe. They agree to name the firm Steptoe and Small and to split all profits. Ben is also a director for a publicly-traded telecommunications firm, NewVector, Inc. Ben has just learned that Harvey is lead counsel is a lawsuit against NewVector. Ben continues to serve as a board member and participates in sensitive discussions about the lawsuit. Ben does not disclose that Steptoe is his partner. Ben's feeling is that he and Harvey are as honest as the day is long and neither would compromise their duties to NewVector and client, respectively.

• A) Ben has a conflict of interest and must either resign as a director or leave the partnership.
• B) The pledge of both Ben and Harvey is sufficient to cover the ethical issues on conflict.
• C) It is Harvey's obligation to take action, not Ben's.
• D) None of the above

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Definitions:

Product Line

A group of related products marketed by a company that serves a particular category of goods or services.

Soft Drinks

Non-alcoholic beverages that are usually carbonated and contain various flavorings and sweeteners.

Family Branding

A marketing strategy where a company markets multiple products under the same brand name to leverage brand equity.

Brand Name

Part of a brand consisting of words or letters that form a name that identifies and distinguishes an offering from those of competitors.