Sally lists her property for sale with Broker Al. Al learns that the property is about to be rezoned to a higher use. He tells Sally he would like to purchase the property himself. She agrees, and the sale closes. Six months later, Al resells the property for a significant profit. This is legal:

A. as long as before Sally agreed to the sale, Al informed her of the upcoming zoning change and what it would mean for the property's value.
B. as long as he disclosed to Sally the profit made off of the resale, after his sale closed
C. only if Al shares his profits with Sally
D. under no circumstance

Answer: A. as long as before Sally agreed to the sale, Al informed her of the upcoming zoning change and what it would mean for the property's value
When Al decided to buy the property for himself, his duty to disclose conflicts of interest and material facts to his principal required him to let Sally know all of the circumstances. If he failed to do so, it was self-dealing and a breach of fiduciary duties.