1. Bob was hired as an agent by Martin to locate property owners and connect them with contractors who would then buy building materials from Martin. To entice contractors to purchase their building materials from Martin, agent Bob was authorized to give contractors a 10% discount if they paid within 30 days. Bob contracted contractors and offered them a 5% discount if they paid within 30 days. If Martin discovered this arrangement and sued Bob to recover the 5% difference. a. He will win; he is alleging breach of the duty of care.
b. He will win; he is alleging breach of the duty of loyalty.
c. He will lose; even though he has breached his duty of loyalty, Martin did not suffer any loss. Therefore, Bob has no liability.
d. He will lose; Bob has not breached either his duty of care or his duty of loyalty.