Unit 5

Please answer the questions on the attached document below by following the guidelines.

  • It is late Friday afternoon and your top salesperson asks to talk to you. She tells you that she is resigning to take a similar job with your major competitor.


Q: How should you react and what should you do next? Apart from the decision as to whether to make a counter-offer, what other decisions do you need to make? What other concerns should you have?

5.2 Green Bay, a Midwestern hotel chain is expanding its market presence by opening hotels in southern states in the U.S. . They have hired companies to conduct marketing studies. They have also been working with architects and construction companies to finalize the constructions plans for the properties. Green Bay has made the plans known to only a few upper level officers in their company and all have signed non-disclosure agreements. The officers were also required to sign non-compete agreements that would be in force for 18 months after they left the company and precluded them from working with any competitor.  Unfortunately, one of the hired engineers was found to have leaked the new plans to Hopkins, one of Green Bay’s competitors. The company learned that Hopkins bribed the engineer to reveal the plans. On top of that, Bonnie, one of the upper level officers who received the information about the new plans, has just turned in her notice, and admitted that she is going to work for Hopkins.  

  • Q: What is the first thing that you, as management should do? How can Green Bay protect the information relating to its planned expansion? Can Green Bay prohibit Bonnie from going to work for Hopkins?

5.3 A salesperson signed a non-compete clause when he went to work for a furniture chain. In the agreement he confirmed that he would not work for any furniture company for 6 months or within 30 miles of any of the furniture chain stores. The employee left and went to work for a competitor. The former employer then filed a law suit alleging misappropriation of trade secrets and breach of contract.

  • Q: How do you think the court would rule on the enforceability of the non-compete agreement?

5.4  If you are a new employee, do not have high security clearance, and are presented with reports containing trade secrets, would you be violating any duty owed to your employer if you shared the information you learned with your friends over dinner?


Guidelines |

Examine both sides of the issue.

It is important to think systematically about these questions. Do not just evaluate on the basis od how 1 person would be affected, but think how the entire system (whether it’s the economic system, the political system, or the innovative system) that will be affected.

Rubric | For each question use the IRAC Protocol:

I Identify the relevant legal issue. 25 points
R Cite the relevant rule, statute, case law, or legal theory that defines the issue.  Also, note the relevant public policy. 25 points
A Analyze the facts and compare them with the relevant rules or definitions and any public policy 25 points
C Form a logical conclusion about whether the issue is being handled in such a way as to support the public policy, or if there are problems. Propose a solution if there are problems. 25 points
                                                                                                   Total  100 points

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