Question 1 - #50642
Your answer: A was correct!
Topel recommended the stock to his superiors, but they chose not to buy it. While Topel should not buy the stock in advance of his recommendation, he is not prohibited from purchasing it for himself should the company choose not to act. Kennedy’s research may have been thorough, and there is no evidence that she violated the reasonable-basis Standard. But the loyalty Standard requires that Kennedy put Samson Securities’ interest before her own and not deprive her employer of her skills and abilities. Since Kennedy spent five days of company time researching Koral Koatings, the company has a right to benefit from her research. (Study Session 1, LOS 2.a)
This question tested from Session 1, Reading 2, LOS a, b

Question 2 - #50643
Your answer: A was correct!
The Koons’ gift does not violate Standard I(B). According to the standard, gifts from clients are different from gifts from other parties because the potential for obtaining influence to the detriment of other clients is not as great. Therefore, according to the standard, Garvey may accept the Koons gift as long as she discloses it to her employee, which she did. See Example 7 on pages 22 and 23 of the Standards of Practice Handbook, 9th
edition, for an example of how the standard was applied in a similar situation. The Jones gift is a bonus from a job that does not compete with Garvey’s work for Samson, and as such does not violate the Standard. The fact that Jones is a Samson client is irrelevant in terms of this gift, as there is no
 nformation in the vignette about Garvey providing investment-related services for Jones. (Study Session 1,
LOS 2.a)
This question tested from Session 1, Reading 2, LOS a, b