
Contents
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I. Introduction I. Introduction
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II. Some Distinctions: Employee “Loyalty,” Obligations of Good Faith, the Duty to Act in the Principal’s Best Interests, and the “Necessary Fiduciary Norm” II. Some Distinctions: Employee “Loyalty,” Obligations of Good Faith, the Duty to Act in the Principal’s Best Interests, and the “Necessary Fiduciary Norm”
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III. The Employee’s Duty of Loyalty III. The Employee’s Duty of Loyalty
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IV. The Duty of Good Faith IV. The Duty of Good Faith
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V. The Duty to Act in the Principal’s Best Interests V. The Duty to Act in the Principal’s Best Interests
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VI. The Necessary Fiduciary Norm VI. The Necessary Fiduciary Norm
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VII. Deliberative Priority and Deliberative Exclusivity: The Bad Faith Breach Norm VII. Deliberative Priority and Deliberative Exclusivity: The Bad Faith Breach Norm
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VIII. The True Fiduciary Holds Two Duties, Not One: The Necessary Fiduciary Norm and the Bad Faith Breach Norm VIII. The True Fiduciary Holds Two Duties, Not One: The Necessary Fiduciary Norm and the Bad Faith Breach Norm
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IX. A Test Case: What Sort of “Duty of Loyalty” Arises in Familial Relationships? IX. A Test Case: What Sort of “Duty of Loyalty” Arises in Familial Relationships?
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X. Conclusion: The Moral Norms of Fiduciary and “Duty of Loyalty” Law X. Conclusion: The Moral Norms of Fiduciary and “Duty of Loyalty” Law
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Acknowledgments Acknowledgments
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41 Fiduciary Law and Moral Norms
Get accessJ. E. Penner, National University of Singapore
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Published:09 May 2019
Cite
Abstract
This chapter explores the connection between fiduciary relationships and moral norms or standards. It first considers the distinctions between employee “loyalty,” obligations of good faith, and the duty to act in the principal’s best interests. It then examines the two moral norms covered by the fiduciary’s duty of loyalty: the “bad faith breach” norm and the “necessary fiduciary norm.” The “bad faith breach” norm prohibits the fiduciary from taking advantage of his or her position by breaching, in bad faith, a duty owed to his or her principal. This norm applies to others who are not fiduciaries, such as employees and parents. The chapter explains how the “bad faith breach” norm relates to “breach of trust” or breach of faith and how the necessary fiduciary norm is associated with the norm of natural justice, which prohibits bias in decision-making. Finally, it reviews a test case that illustrates what sort of “duty of loyalty” arises in familial relationships.
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