Steve has been disgruntled with his firm for some time and is secretly planning to leave and start his own manufacturer representative firm with the contacts he has made. Steve has been making copies of the firm's file-secured customer lists, supplier lists, pricing guides, and financial information which is routinely circulated to the staff.
A) If Steve leaves and contacts the customers of his former firm, there is a good chance that he will be liable for damages caused by his taking this information.
B) Steve shouldn't have made copies on the old firm's copy machine but taken the originals to an outside copy service.
C) Steve's former firm will have a difficult time stopping Steve because it did not protect its information.
D) Customers who switch to Steve's new firm will be liable to Steve's former firm for lost profits.

Question

Quizplus · Accepted Answer

Steve is potentially violating trade secret laws by taking confidential information and using it for personal gain. If he contacts his former firm's customers using this information, he could be liable for damages caused by his actions.

Steve Has Been Disgruntled with His Firm for Some Time