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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 (April) 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. On these facts, which of the following is false?
Due Diligence
An investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or transaction with another party.
Business Decision
A judgment or choice made in the context of managing a company, often involving resource allocation and strategy.
Pooling Agreement
An agreement made by shareholders whereby they promise to vote the same way on a particular issue. Also called shareholder agreements and voting agreements.
Breach of Contract
The failure of one party to fulfill any of its contractual obligations without a valid legal reason, leading to possible legal action by the other party.
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