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Reference - Kite Sales

Question 113

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Reference - Kite Sales. Wendy is president of a business that manufactures kites. The kites of her company, ABC Kites, are sold to large toy stores. After Wendy learned a great deal about kites, she started to make kites at home and to promote them to large toy stores. She also started selling kites to friends. Some of the directors learned about her kite sales and accused her of wrongdoing. Wendy denied any wrongdoing. What remedy will be imposed on Wendy, if any, for her home kite sales?


A) Nothing because Wendy did not engage in any wrongdoing.
B) She will be required to cede to the corporation half of any profits she earned as a result of the breach.
C) She will be required to cede to the corporation only profits she earned as a result of the breach that the corporation can prove by a preponderance of the evidence it lost as a result of her actions.
D) She will be required to cede to the corporation any profits she earned as a result of the breach unless she can by a preponderance of the evidence that the corporation lost no sales as a result of her actions.
E) She will be required to cede to the corporation all the profits she earned as a result of the breach.

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