Reference no: EM13864522

Legal ethics of business

Intellectual property rights for many organizations can be very valuable. For example: trade secrets, client lists that an employee has established while working for the organization.

The following act denoted as the Economic Espionage Act of 1996 makes it a federal crime to purchase or have possession of another persons trade secrets particularly if they had prior knowledge that the information received was taken without the permission of the organization to which it belongs to.

Violations of the act can lead to a maximum of ten years in prison if convicted, as well as, a fine of up to $500,000.00. If a corporation violates the act they can be fined up to a maximum of five million dollars. In addition any equipment and property used in the commission of the violation of the act may be seized.

Discuss the following:

a) How ethical is the act with regard to an employee who resigns from the organization, and begins working for the competition with regard to being able to use their client lists after a period of time has lapsed?

b) How ethical would the employee be if they began using proprietary information such as trade secrets under intellectual property rights sharing it with their new employer and other employees by just making some adjustments and changing the name?

c) Do you feel that the act is too restrictive and why?

d) Should the former employee be held accountable for any violations of the act if they never signed an agreement of non-disclosure?

e) Should they be held accountable for violations of the act if they signed a non-disclosure agreement?

f) Since the employee developed the client lists who do they belong to the organization or the employee?

Make your answer not too long but be clear in your answer. Maximum of 1 page or less.

2) Consider and answer the following question.

Why are consumer protection laws important? Cite a specific example from a credible source to support your opinion and provide reference.