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

Question

Quizplus · Accepted Answer

Gordon could potentially sue Thad for breach of contract for leaving before the agreed upon date and for breach of trade secret law for copying and taking the formula. Gordon could also potentially sue Barr for inducing breach of contract if there is evidence that Barr knew about Thad's contract and encouraged him to leave early. As one remedy, Gordon could ask for an accounting of profits that Barr made from marketing the solution. However, it is not necessarily true that Gordon could not get an injunction to stop Barr from marketing the product. If it can be proven that Thad breached his contract and stole Gordon's trade secret, and that Barr knowingly received and used this information, a court could potentially issue an injunction to stop Barr from marketing the product.

Gordon Invented a Solution That Dissolved the Residue of Tape