Question

Gustav was an employee in the new product development department of Polycarp Corporation. Gustav was directly involved in the development of No-More Wrinkles, a new product that Polycarp intended to launch in three months. Polycarp took extensive precautions to keep information concerning the new product a secret. The Romulus Group, a fierce competitor of Polycarp, persuaded Gustav to leave Polycarp to direct Romulus' sales department. Which statement is correct?

Group of answer choices:
A. Gustav can share with Romulus the confidential information he knows about Polycarp's new product because his agency relationship with Polycarp is terminated.
B. Gustav cannot share with Romulus the confidential information he knows about Polycarp's new product because Gustav is required to perform all acts authorized by Polycarp.
C. Gustav cannot share with Romulus the confidential information he knows about Polycarp's new product because he has a duty not to disclose confidential information he acquired while working for Polycarp.
D. Gustav can share with Romulus the confidential information he knows about Polycarp's new product because he is in sales for Romulus which is different than R&D.

Answer 1

Gustav cannot share with Romulus the confidential information he knows about Polycarp's new product because he has a duty not to disclose confidential information he acquired while working for Polycarp.

Step-by-step explanation:

The correct statement in this scenario is C: Gustav cannot share with Romulus the confidential information he knows about Polycarp's new product because he has a duty not to disclose confidential information he acquired while working for Polycarp.

When an employee leaves a company, they are still bound by their duty of confidentiality. This duty extends even after the termination of their employment relationship. Gustav, as an employee directly involved in the development of the new product, is obligated to protect the confidential information he acquired.

Sharing the confidential information with a competitor like Romulus would be a breach of Gustav's obligation to Polycarp and could lead to legal consequences.