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Ryan Was an Engineer and the Vice President for a Technology

Question 57

Multiple Choice

Ryan was an engineer and the Vice President for a technology company called App Ville that specialized in creating applications (apps) for smartphones.He spent most of his time working on an app that could tell if you were impaired by alcohol by breathing onto the screen of the phone.Just before he could complete the app,he resigned and incorporated his own app creation business,App City.The local police force asked for bids on an app that could detect an impaired driver and accepted App City's bid over App Ville's.Is App Ville able to take any legal action against anyone in this situation?


A) Yes,they can sue App Ville for taking a corporate opportunity of App City.
B) Yes,they can sue Ryan for taking a corporate opportunity and therefore breaching his fiduciary duty to App Ville,but only if they can show that the opportunity was identified and actively being pursued by App Ville.
C) Yes,they can sue Ryan for taking a corporate opportunity and therefore breaching his fiduciary duty to App Ville,but only if they can show that the app was at least 50% of App Ville's business.
D) No,a fiduciary duty is only owed by directors to a company,not by officers,and Ryan is not a director,only an officer of App Ville.
E) No,Ryan was the creator of the app,so he is free to take it with him when he leaves the company.

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