Mohammad was an employee in the new product development department of Estay Inc.Mohammad was directly involved in the development of a new product that Estay intended to launch in 6 months.Estay took great care to keep information concerning the new product a secret.Ceries,Inc. ,a competitor of Estay,persuaded Mohammad to leave Estay to direct Ceries' marketing department.Which statement is correct?

Question

Quizplus · Accepted Answer

Although Mohammad's agency relationship with Estay has been terminated, he still has a duty not to disclose any confidential information he acquired during the agency. This duty arises from his fiduciary obligation to Estay as a former employee who had access to confidential information. The Equal Dignities Rule is not applicable in this case as Ceries did not require a contract in writing to be formed. Sharing confidential information with Ceries would be a breach of Mohammad's duty of loyalty to Estay and could result in legal action against him. Therefore, option D is the correct choice.

Mohammad Was an Employee in the New Product Development Department