What is the general scope of the fiduciary duties of loyalty in agency contexts as illustrated by Foodcomm International v. Barry?

• A. They require strict avoidance of all personal gain
• B. They prohibit using the position for personal gain or undermining the principal's business
• C. They apply only to officers, not employees
• D. They do not apply if the employee resigns before discovery

Answer: (B)

Fiduciary duties of loyalty require an agent to place the principal’s interests above their own and to avoid acts that further the agent’s self‑interest at the principal’s expense. Foodcomm International v. Barry illustrates this broad scope by holding that a fiduciary must not use the position to gain personally or to undermine the principal’s business, and they may not appropriate business opportunities or confidential information for themselves. The duty is owed by both officers and employees, and breaches can occur through actions taken while in the relationship, even if the agent later resigns. This is why the correct understanding is that loyalty prohibits using the position for personal gain or to harm the principal’s interests.