Question 1

Joe worked for Harry's Fine Toys for a period of six years.In September, he left Harry's Fine Toys and went to Sam's Toy Shop, a competitor, disclosing Harry's Christmas line.What could Harry do under these circumstances?

Accepted Answer

The answer of Joe worked for Harry's Fine Toys for...

Question 2

Which of the following is true with regard to trade secrets?

Accepted Answer

Trade secrets are a form of intellectual property that are protected under the law, but they are not protected by patents, copyrights, or trademarks. Instead, they are protected by trade secret laws, which provide remedies for misappropriation or unauthorized use of trade secrets.

Question 3

Beth and Kate, trying to beat the competition to the market, were in a mad race to complete a book with a computer program that would aid gardeners in designing and maintaining their gardens.Because they knew another group in town was working on a similar project, they were very fearful that their work would be plagiarized (copied).Which of the following is false with regard to their safeguarding their work?

Accepted Answer

The answer of Beth and Kate, trying to beat the...

Question 4

Which of the following is correct with respect to trade secrets?

Accepted Answer

Trade secrets can include formulas, processes, recipes, and other confidential information that gives a business a competitive advantage. Option A is incorrect; the information is kept confidential, not fully disclosed. Option C is also incorrect, as personal information that affects the business can be protected as a trade secret. Option D is incorrect, as employees must be informed that certain information is confidential. Option E is incorrect, as there is an implied duty not to disclose trade secrets, even without a contract.

Question 5

Which of the following is true with respect to the duty owed when a person is in possession of confidential information?

Accepted Answer

The answer of Which of the following is true with...

Question 6

Discuss the scope and purpose of the Personal
Information Protection and Electronic Documents Act (PIPEDA).

Accepted Answer

The answer of Discuss the scope and purpose of the...

Question 7

Computer students who watched their teachers go out on strike were amazed when they heard about the difficult logistics required in such an operation.Two students spent two nights and two days developing a program to organize a strike and picket line.It included such variables as legal requirements, number of sites, number of picketers, communications network, shifts, and media contacts.The students called their program "Picket Program." The students took their package-program and manual-to a computer developer/publisher, Mr.Lacs, to discuss the feasibility of marketing it.Lacs said that it was feasible.However, negotiations, which stretched over two weeks, broke down when Lacs rejected the terms in the students' licensing agreement.Three months later, the students learned that Lacs had developed and published a program called "Picketers' Path" based on their ideas, with a manual that they recognized as their own.On these facts, which of the following is true?

Accepted Answer

The students could potentially sue for breach of trade secret law if they can prove that Lacs was trusted with confidential information and then developed and published a program based on their ideas without their permission. However, they would need to provide evidence to support their claim. The other options are not accurate: A) Copyright protection does not require an application to be filed, and the students' manual may have been protected automatically; B) Signing a non-disclosure agreement is not the only way to establish a duty of confidentiality; C) Trade secret protection can extend to information that is not strictly secret, as long as it has economic value and is kept confidential; and E) Ideas alone cannot be protected by trade secret law, but if the students provided Lacs with specific details about their program, those details may qualify for protection.

Question 8

The Personal Information Protection and Electronic Documents Act (PIPEDA) applies only to federal government institutions.

Accepted Answer

PIPEDA applies to all private sector organizations that collect, use or disclose personal information in the course of a commercial activity. It also applies to federally regulated businesses such as banks and telecommunications companies.

Question 9

Which of the following is true in respect of privacy law in Canada?

Accepted Answer

Organizations in the private sector in Canada are subject to various privacy laws and regulations, including the Personal Information Protection and Electronic Documents Act (PIPEDA) and provincial privacy laws. These laws set out specific requirements for how organizations must collect, use, and disclose personal information, as well as requirements for safeguarding that information.

B) is incorrect, as both federal and provincial governments have the power to enact privacy legislation.

C) is incorrect, as while privacy protection may be found in common law, it is also specifically legislated in various Canadian privacy laws.

D) is incorrect, as the Personal Information Protection and Electronic Documents Act applies to both private sector organizations and federal government organizations.

E) is incorrect, as privacy laws are considered necessary to provide consistent and enforceable protection for individuals' personal information.

Question 10

Separate privacy protection is provided under common law.

Accepted Answer

The answer of Separate privacy protection is provided under common...

Question 11

Where a competitor has encouraged an employee to breach his or her duty of confidentiality, it may be possible to seek redress from that competitor in the form of damages for inducing a breach of contract.

Accepted Answer

This statement is true. If a competitor encourages an employee to breach his or her duty of confidentiality, the employer may be able to seek damages for inducing a breach of contract.

Question 12

Discuss the idea of the duty of confidentiality that an employee owes to the employer.Give examples of the circumstances under which such a duty is imposed and what an employer should do to ensure that such confidences are kept.

Accepted Answer

The answer of Discuss the idea of the duty of...

Question 13

An employee could not be sued for disclosing a company's customer list because no trade secret or unique manufacturing process is involved.

Accepted Answer

The statement is incorrect because a customer list can be considered a trade secret or confidential information protected by non-disclosure agreements. Therefore, an employee could be sued for disclosing it without authorization.

Question 14

The federal government's Personal Information Protection and Electronic Documents Act (PIPEDA) applies in all provinces except where legislation that provides for equivalent protection has been passed by the province.

Accepted Answer

PIPEDA applies to all provinces unless they have their own legislation with equivalent protection in place.

Question 15

Lodown Ltd., a company created by Mr.Day, became very successful over its 10-year history.The company was run by Day, as president, and three vice-presidents (Martin, Mull, and Rand) who made up the executive board.At their last meeting, Day announced that he had confidential information to share with them-namely, that his wife was terminally ill, that he was withdrawing from active management for an indefinite period of time, and that he would transfer his responsibilities to Martin.Rand repeated this information to others, and by doing so, he caused the company to lose a lucrative contract being negotiated and also caused Day personal embarrassment and monetary loss in his personal affairs.On these facts, which of the following is true?

Accepted Answer

Rand owes a fiduciary duty to the company as an officer of the company, and this duty includes maintaining the confidentiality of sensitive business-related information. By repeating Day's confidential information to others and causing the company to suffer a loss of a lucrative contract, Rand breached this duty. The fact that the information was personal in nature does not excuse Rand's actions, as it still had a direct impact on the company's commercial interests. Therefore, the company would have an action against Rand for breaching his fiduciary duty. A non-disclosure provision would reinforce the obligation of confidentiality, but it is not required to bring action against Rand. The fact that the information was not a trade secret is not relevant to the breach of fiduciary duty.

Question 16

Gordon invented a solution that dissolved the residue of tape that remained on walls after the removal of notices, pictures, etc.He kept his formula secret, but wasn't yet interested in marketing it, just in improving it.Gordon's only employee, Thad, who had signed a contract to work until July 1, 2011, was offered a job by Mr.Barr, who would pay him twice his salary if Thad would leave Gordon right away (in April) and bring Gordon's secret formula with him.Because Thad was upset by Gordon's lack of interest in marketing his product, he did copy the formula, quit, and began working for Barr, who marketed the solution.On these facts, which of the following is false?

Accepted Answer

Even if Barr didn't steal the formula, he may still be liable for inducing breach of contract if he knowingly induced Thad to breach his contract with Gordon. However, Gordon may be able to get an injunction to stop Barr from marketing the product if he can show that the marketing is based on his trade secret formula, which Thad wrongfully obtained and disclosed to Barr. Gordon can sue Thad for breach of trade secret law and breach of the employment contract, and as a remedy, he could ask for the accounting of profits that Barr made from the marketing of the product based on Gordon's formula.

Question 17

In order to obtain a remedy for the disclosure of confidential information or a trade secret, what must the plaintiff show?

Accepted Answer

The plaintiff must show that the disclosure of information has caused harm in order to obtain a remedy. The other choices may be relevant, but are not required for the plaintiff to succeed in their claim.

Question 18

Maureen, who frequently develops gadgets, had an idea for a machine that could feed her animals (cats, dogs, rabbits, and fish) while she was away on vacation for a week.She was very sure of the idea and began discussions with a manufacturer.Unfortunately, after it was concluded that it could make the machine, the parties could not agree on proper compensation and they broke off negotiations.Shortly afterwards, this manufacturer, Easylife Ltd., began to manufacture "the animal feeder" based on Maureen's idea.On these facts, which of the following is true?

Accepted Answer

Since Maureen's idea was not patented, she cannot sue for patent infringement. However, she may be able to sue for misuse of a trade secret if she can prove that she had a confidential relationship with the manufacturer and that the manufacturer used her idea for their own benefit. Ideas themselves are not protected by trade secret law, but if Maureen can show that she shared confidential information with the manufacturer and they used that information without her consent, she may have a case for misuse of a trade secret. Copyright law would not apply to this situation as it only protects original works of authorship, such as books, music, and artwork.

Question 19

Chad was the best private detective in the west.His system for tracking persons who have caused themselves to disappear was markedly superior to that of others.Sally, his only assistant, was considered so valuable that he had her sign five-year contracts with non-disclosure clauses.Sally took notes at a private meeting between Chad and a representative of the RCMP who was negotiating a contract with Chad to track down two criminals.Sally and Chad took care that the discussions were understood to be confidential-regarding the information shared both by the RCMP and by Chad about his methods.Sally was approached by a competitor of Chad, Mr.Adolph, who offered her three times her current salary if she would break her contract with Chad, sign with him, and bring him information about Chad's tracking system.After some months, she did just that.Furthermore, she shared with Adolph the information given to Chad by the RCMP, which caused the RCMP embarrassment, time, and money.Which of the following is true?

Accepted Answer

Sally breached her employment contract with Chad by breaking the non-disclosure clause and sharing confidential information with a competitor. Chad can sue Sally for this breach of contract, including the non-disclosure clause.

Question 20

Explain under what circumstances a tort action of inducing a breach of contract can be brought.

Accepted Answer

The answer of Explain under what circumstances a tort action...

Quiz 9: Ideas and Information