Question

Mohammad was an employee in the new product development department of Estay Inc. Mohammad was directly involved in the development of a new product that Estay intended to launch in 6 months. Estay took great care to keep information concerning the new product a secret. Ceries, Inc., a competitor of Estay, persuaded Mohammad to leave Estay to direct Ceries' marketing department. Which statement is correct a. Mohammad can share with Ceries the confidential information he knows about Estay’s new product because he was directly involved in its development.
b. Mohammad can share with Ceries the confidential information he knows about Estay’s new product because his agency relationship with Estay is terminated.
c. Mohammad cannot share with Ceries the confidential information he knows about Estay’s new product because of the equal dignities rule.
d. Mohammad cannot share with Ceries the confidential information he knows about Estay’s new product because he has a duty not to disclose confidential information he acquired during the agency.

Answer 1

Answer:

d. Mohammad cannot share with Ceries the confidential information he knows about Estay’s new product because he has a duty not to disclose confidential information he acquired during the agency.

Explanation:

Mohammad cannot share confidential information with an external competitor even when he is no longer in the service of the firm.

The only option left for Mohammad is if Estay gives him approval to share the piece of information.