Alan has authority to make purchase contracts. Alan has a friend who sells hot dogs, the friend offers Alan a vacation condo. Applying the Newspaper Test the headlines would read “ Alan awards Hotdog Contract for frien in exchange for vacation resort, food included! This kind of news is not only damaging to Alan’s company which should upkeep a business of integrity, clearly there is a conflict of interest by accepting this offer. Alan should excuse himself from the order.
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