Dracca became cognizant that one of its rivals. TrendBaby. Inc. . was beging information from one of Dracca’s employees. Bob Shumaster. Shumaster was seemingly detailing merchandise assembly information that was alone to Dracca and explicating to TrendBaby how this assembly scheme saved Dracca 1000s of dollars each month. Dracca discovered that TrendBaby really hired Shumaster to supply this information. and that Shumaster was utilizing Dracca company computing machines to relay the proprietary information to TrendBaby via electronic mail. Meanwhile. Sally May. a gross revenues representative for Dracca ran into her neighbour who is a gross revenues representative from one of Dracca’s rivals. May is friendly with her neighbour. and drives her kids to school each forenoon. The households get along good. and frequently have barbecues and other societal events together in the vicinity. As portion of the little talk. May mentioned to her neighbour the new gross revenues publicity Dracca was offering retail merchants on its full line of merchandises. Although the publicity had been mentioned in trade publications. May’s neighbour had non yet heard about it and was funny about its inside informations.

May worked closely with the selling section. Her co-worker in selling. Rick Martin. developed the new motto for Dracca’s cot merchandises: “A Full Night’s Sleep. ” In the Internet advertizement for this run. Dracca claimed that babes utilizing its cot merchandises slept two hours longer than other babies. This was an unverified statistic. Dracca’s crib gross revenues increased 50 per centum because of this advertizement. but they received many ailments from unsated parents. Dracca sold the cot to eight different retail merchants across the United States. Dracca charged six of the retail merchants $ 75 per unit. but they merely charged the other two retail merchants $ 50 per unit because they were Dracca’s best retail clients. Due to the monetary value derived function. the two retail merchants with the $ 50 per unit monetary value were responsible for 96 per centum of Dracca’s gross revenues. even though each of the eight retail merchants purchased the same measure of stock list. These cots were manufactured in a works in Philadelphia. Carbon dioxide was portion of the plant’s emanations.

The Philadelphia works met local guidelines for C dioxide emanations. but it exceeded recommendations set Forth by the federal authorities for C dioxide end product in a calendar twelvemonth. In visible radiation of these facts. delight respond to the undermentioned inquiries utilizing class stuff and believable outside research to back up your findings. Please submit findings in a three- to five-paper. following APA guidelines. * Did Shumaster commit any condemnable Acts of the Apostless? Does TrendBaby hold any liability related to Shumaster’s action? Why or why non? Rely on legal rules from this week’s reading to back up your decision. * Would the Computer Fraud and Abuse Act use to Shumaster’s usage of Dracca’s computing machine to e-mail misappropriated trade secrets to a rival? Rely on legal rules and instance jurisprudence from this week’s reading to back up your decision. * Is it ethical for May to hold a conversation with her neighbour about Dracca’s new gross revenues publicity? What factors should May see in doing her determination? * Can consumers of Dracca’s new cots Sue for false advertisement? What factors would the tribunal consider in measuring a instance for fraudulence under the fortunes?

* Has Dracca committed secondary line favoritism in its varied pricing of the cot? What factors would a tribunal consider in this type of analysis under the Robinson-Patman Act? * Is Dracca in misdemeanor of any environmental Torahs with its Philadelphia works? Be certain to give a legal premiss for your decision. What are the branchings for Dracca if it continues to transcend federal recommendations for C dioxide end product? What are the branchings for the Philadelphia country? * What actions ( internal and external ) do you urge to Dracca to rectify the ethical and legal considerations of this scenario? Be specific and elaborate. and be certain to establish recommendations on relevant legal and ethical rules.

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If anterior to or during the class of Bob Shumaster’s employment. he was required to admit and subscribe a ( Nondisclosure ) Confidentiality Agreement with his employer. Dracca. he has committed a offense by working for TrendBaby. He is in misdemeanor of embezzlement of a trade secret. “Generally. if a trade secret is misappropriated and published over the cyberspace ( emailed ) . a party’s redresss are limited to amendss. The scenario does non province whether there was a patent on Dracca’s procedure or non. nevertheless. there should hold been an understanding between employer and employee which states that there should be no communicating between employee and another company sing the information of the process-especially the viing company.


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