Gordon Invented a Solution That Dissolved the Residue of Tape

question 129

Multiple Choice

Gordon invented a solution that dissolved the residue of tape that remained on walls after the removal of notices,pictures,etc.He kept his formula secret,but wasn't yet interested in marketing it,just in improving it.Gordon's only employee,Thad,who had signed a contract to work until July 1,2011,was offered a job by Mr.Barr,who would pay him twice his salary if Thad would leave Gordon right away and bring Gordon's secret formula with him.Because Thad was upset by Gordon's lack of interest in marketing his product,he did copy the formula,quit,and began working for Barr,who marketed the solution.Given these facts,which of the following is false?

• A) Gordon could sue Thad for breach of the employment contract.
• B) Gordon could sue Barr for inducing breach of contract.
• C) Gordon could not get an injunction to stop Barr from marketing the product because Barr didn't steal the formula.
• D) Gordon could sue Thad for breach of trade secret law.
• E) As one remedy, Gordon could ask for the accounting of profits.

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Definitions:

Net Income

The total profit of a company after all revenues and gains are accounted for and all expenses and losses are deducted.

Direct Expense

Costs that can be directly traced to a specific product, service, or department, and is a key factor in the cost of goods sold.

Indirect Expense

Costs that are not directly attributable to a specific cost object, such as a product or service.

Insurance

A contractual arrangement that provides financial protection or reimbursement against losses from an insurance company.