Maureen, Who Frequently Developed Gadgets, Had an Idea for a Machine

question 77

Multiple Choice

Maureen, who frequently developed gadgets, had an idea for a machine that could feed her animals (cats, dogs, rabbits, and fish) while she was away on vacation for a week. She was very sure of the idea and began discussions with a manufacturer. Unfortunately, after it was concluded that he could make the machine, they could not agree on his proper compensation and they broke off negotiations. Shortly afterwards, this manufacturer, Easylife Ltd., began to manufacturer "the animal feeder" based on her idea. On these facts, which of the following is true?

• A) The manufacturer could not be sued for misuse of a trade secret because he was not Maureen's employee and thus was not in a position of trust and could use the information for his own benefit.
• B) The manufacturer could not be sued for misuse of a trade secret because Maureen only told her idea and ideas cannot be protected by trade secret law.
• C) The manufacturer could not be sued for misuse of a trade secret because he had not signed any document in which he acknowledged he understood it was confidential information and in which he promised not to use it to her detriment.
• D) Maureen could not sue the manufacturer for infringement of copyright but could sue for misuse of a trade secret if she can show that it was apparent in the circumstances that he was being trusted with confidential information.
• E) Maureen has no action against the manufacturer because she had not patented her invention.

---

Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero, showing the basic level of consumption necessary for survival.

Permanent Income Hypothesis

A theory suggesting that people's consumption decisions are based on their long-term income expectations rather than their current disposable income.

Negative Savings

A situation where spending exceeds income, resulting in a deficit rather than savings.

Price Ceiling

A legally established maximum price that can be charged for a good or service, typically set by government.