Allen calls PepsiCo,the makers of Pepsi Cola,saying that he is an employee of Coca-Cola and he has the Coca-Cola secret recipe.The recipe is legendary as a closely guarded secret supposedly known to only a handful of people in the world.They arrange a meeting.Allen begins the meeting by stating that he acquired the recipe legally,and the PepsiCo representative says that she believes him and PepsiCo will buy it.Allen in fact stole the recipe.Since PepsiCo does not know specifically that the recipe was acquired improperly by Allen,the company cannot be guilty of misappropriation.

Question

Quizplus · Accepted Answer

PepsiCo would be guilty of misappropriation if they had knowledge that the recipe was acquired improperly, even if they believed Allen's claim that it was acquired legally. Since Allen stole the recipe, it was acquired improperly and PepsiCo could potentially be found guilty of misappropriation if it is discovered that they knew or should have known that the recipe was not lawfully obtained.

Allen Calls PepsiCo,the Makers of Pepsi Cola,saying That He Is