Asked by Joseph Stewart on Jul 19, 2024

Verified

Lodown Ltd., a company created by Mr. Day, became very successful over its ten-year history. The company was run by Day, as president, and three vice-presidents (Martin, Mull, and Rand) who made up the executive board. At their last meeting, Mr. Day announced that he had confidential information to share with them, namely, that his wife was terminally ill, that he was withdrawing from active management for an indefinite period of time, and that he would transfer his responsibilities to Martin. Rand repeated this information to others, and by doing, so he caused the company to lose a lucrative contract being negotiated. On these facts, which of the following is true?

A) Rand owes no fiduciary duty to the company as an officer of the company.
B) A non-disclosure provision is required, Day simply putting the members of the executive on notice that they were expected to keep the information confidential is not sufficient to bring action.
C) In law, there can be an no action against Rand because the information he repeated was not a trade secret.
D) The company would have an action against Rand because it is a commercial enterprise that suffered a loss because he breached his fiduciary duty to the company.
E) Rand cannot be sued since the information disclosed was personal and did not deal directly with the business.