Asked by Elizabeth Flanagan on Feb 18, 2024



Steve works for a cement company as an IT contractor.The company does not ask Steve to sign a nondisclosure agreement,but Steve has full access to the company databases and documents.Steve also attends meetings during which a new,fast-drying,and injectable product is openly discussed.A year later,Steve reveals the formula to a competing company and is scheduled to receive royalties.Discuss the legal and ethical issues involved in this action.


A share of the income of a business paid by a franchisee to the franchisor.

  • Knowledge of nondisclosure agreements: The learner should be aware of the purpose and importance of nondisclosure agreements in protecting a company's proprietary information and trade secrets.
  • Understanding of access privileges: The learner should recognize the significance of Steve having full access to the company databases and documents, and the potential implications for his legal obligations and ethical responsibilities.
  • Understanding of legal obligations: The learner should be able to identify the legal obligations that Steve may have had as an IT contractor, such as protecting company trade secrets and confidential information.

Verified Answer

Andrea Alexa

Feb 18, 2024

Final Answer :
The answer should acknowledge that the company failed to protect the product and no nondisclosure agreement was signed.However,the issue of ethics is broader than the law.