Fred Worked for a Software Firm,Lernit Inc

question 31

Multiple Choice

Fred worked for a software firm,Lernit Inc.,which was developing a computer program to help illiterate adults learn to read.Fred had signed a three-year contract with Lernit,which included a clause in which he promised not to disclose confidential information.After he had worked there for almost two years,Fred was approached by a retired English teacher,Mr.Wright,who was trying to develop a similar program but needed a skilled programmer.Wright offered Fred about twice the salary and a share in the proceeds from the sale if he would join with him and bring with him a copy of Lernit's program to date.Fred did leave Lernit and did bring the requested program,although it was marked "confidential." Within about two months,Mr.Wright and Fred began to market the finished program,a program very similar to that being developed by Lernit.Mr.Wright estimated that Fred and his information saved him about eight months of work.On these facts,which of the following is true?

• A)Lernit could sue Fred for breach of contract.
• B)Lernit could sue Mr.Wright for inducing breach of contract.
• C)Lernit could sue Fred for breach of confidence/trade secret.
• D)Lernit could seek an injunction to stop Mr.Wright,even though Mr.Wright himself did not take confidential information.
• E)All of the above

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Definitions:

Factor Price

The price paid for the use of a factor of production, such as labor, capital, or land.

Long-Run Total Cost

The total expenses incurred by a firm when all inputs, including both fixed and variable costs, are fully adjustable, reflecting the cost structure over time.

Profits Maximization

The process or strategy aimed at increasing the difference between the total revenue and total costs of a business to the highest possible level.

Price Received

The amount of money paid to a seller for the sale of goods or services.