Martin Is an Intern Working for Tennessee Fried Chicken (TFC),an

question 2

Multiple Choice

Martin is an intern working for Tennessee Fried Chicken (TFC) ,an international company with over 1,000 franchised restaurants throughout the United States and in 21 other countries.TFC heavily advertises on television and in various print media that its chicken is superior due to its blend of "42 secret herbs and spices." Many have tried to duplicate the recipe unsuccessfully,and burglars have even been caught trying to steal it.One day Martin is called into the president's office for an assignment,and during their conversation,the president leaves the room,leaving Martin alone.Martin notices that the wall safe is open and looks inside,where he sees an envelope labeled "THE RECIPE." He opens it and finds that it is the list of the 42 secret herbs and spices,along with quantities and order of use.He quickly makes a copy of the recipe and returns the envelope to the safe.That afternoon,he calls Bluto's Fried Chicken,a TFC competitor,and informs Bluto's of the information he possesses,and they arrange a meeting.If Martin sells the recipe to Bluto's,who,if anyone,would be guilty of misappropriation?

• A) If Martin sells the recipe to Bluto's, Martin is guilty of misappropriation but Bluto's is not guilty of misappropriation.
• B) If Martin sells the recipe to Bluto's, Martin is not guilty of misappropriation but Bluto's is guilty of misappropriation.
• C) If Martin sells the recipe to Bluto's, both Martin and Bluto's are guilty of misappropriation.
• D) Neither Martin nor Bluto's is guilty of misappropriation because leaving the safe open shows that the secret was not guarded and guarding is necessary to qualify for trade secret protections.

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Definitions:

Budget Surplus

The financial situation in which a government's revenues exceed its expenditures over a specified period of time.

Foreign-Currency Exchange

The process of exchanging one currency for another, enabling international trade and finance.

Real Exchange Rate

A measure comparing the relative price levels of a basket of goods between two countries, adjusted for differences in price levels.

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation to reflect the true cost of funds to the borrower and the real yield to the lender.