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ACCA Applied Skills · Corporate and Business Law (Global) · Fraudulent and criminal behaviour

Orla, a purchasing manager at Brightway Ltd, accepts an expensive holiday from a supplier, intending to favour that supplier in future tenders without telling her employer. Which statement is most accurate?

Orla acts corruptly because she accepts an undisclosed benefit intended to influence her decisions, which is a secret commission and a breach of her duty to Brightway. Both she and the supplier may commit offences, and the benefit is not a valid personal gift.

  1. AOrla acts corruptly and the benefit may be treated as a secret commission obtained in breach of her duty to BrightwayCorrect
  2. BThe holiday is a valid personal gift and no duty is breached
  3. COnly the supplier commits an offence
  4. DBrightway must automatically pay the supplier's invoices

Explanation

An agent or employee who takes a benefit from a third party to influence her conduct, without disclosure to her principal, takes a secret commission and breaches her fiduciary duty. Both giver and recipient may commit offences, so the claim that only the supplier is liable is wrong.

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