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CMA Foundation · Fundamentals of Business Laws and Business Communication · Legal Aspects of Business Communication

Ravi, an employee of Kapoor Pharma, shares the firm's unreleased product formula with a rival firm over a private chat, in breach of his employment terms. Which description fits his act best?

Ravi's act is a breach of the duty of confidentiality. He disclosed proprietary, unreleased formula information to a competitor despite his employment terms forbidding it. It is not networking, upward communication or grapevine, since those do not involve wrongful disclosure of protected business secrets.

  1. APermissible networking
  2. BBreach of the duty of confidentialityCorrect
  3. COrdinary upward communication
  4. DLawful grapevine communication

Explanation

Disclosing proprietary information to a rival contrary to employment terms violates the duty of confidentiality. Networking, upward communication and grapevine do not describe wrongful disclosure of trade secrets.

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