Hawkeye Bank & Trust and affiliated banks agreed to refer bank customers to Fina

Question

Hawkeye Bank & Trust and affiliated banks agreed to refer bank customers to Financial Marketing Services, Inc. (FMS) for the purchase of life insurance. Hawkeye and FMS shared the commissions. Hawkeye employees and some independent agents licensed through FMS made the actual sales; however, all insurance business was FMS’ property. Because of concern about the confidentiality of bank customer information, Hawkeye decided to terminate its contract with FMS and sell insurance directly to its customers. The independent agents claimed Hawkeye terminating the contract with FMS constituted intentional interference with the agents’ contracts and prospective relations. Was it? Explain your position.

Subject: MKTG1130-Business Regs and Compliance

Please make sense

Explanation / Answer

Answer: Yes it is interference with the contract as the necessary expertise has been grabbed by the company (bank) and then utilised for its own favours later on. This is un ethical as well as unconstitutional. As a business one should reseoat the expertise the otehr have and then give full credit to them on their expertise. Here in this case the bank abondoned the agent after getting the important information about the know how of the business.

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.