Granny's Cookies is a bakery located in a small town in Nebraska. However, Granny's has a strong Internet presence and ships cookies throughout the United States. Granny's recipes for its cookies are a trade secret. The employees at the Nebraska store who need to know the recipes to bake the cookies are aware of the recipe. The employees have signed a nondisclosure agreement. Jim Bradford, one of Granny's bakers, just took a job with Chippers, a cookie company located in San Diego, California. Chippers also has a strong Internet presence. Which of the following is a correct statement?
A) Granny's can probably not stop Jim from taking the job.
B) Granny's probably can stop Jim from taking its recipes to Chippers.
C) Granny's has no remedy because the recipes are in Jim's head and he does not have to take any records with him to have the recipes.
D) None of the above

Question

Quizplus · Accepted Answer

Granny's recipes are trade secrets, and Jim has signed a nondisclosure agreement. Therefore, it is likely that Granny's can enforce a non-compete agreement and prevent Jim from sharing the recipe with Chippers. Additionally, even if Jim has the recipe in his head, he is still bound by the nondisclosure agreement and cannot share the information with anyone.

Granny's Cookies Is a Bakery Located in a Small Town