Trade Laws

Case Questions

Shumaster, Dracca and TrendBaby; Liabilities and Criminal Acts

Degree of criminality implied on the act of breaching confidential information varies according to the information and the amount it can cost to the organization. In some instances, the information is unique and idiosyncratic to the organization's new and novel product. In other instances during long-term contracts and projects, there exists some information which does not cost much to the organization. Whatever the natures of information is the parties involved, directly or indirectly, in the breaching of confidential information are liable and should equally be held guilty for the discreditable act (Sias, 2008).

Computer Fraud and Abuse Act and Shumaster

According to the legal constraints and obligations, the Computer Fraud and Abuse Act apply to the Shumaster. It states that any violation of an agreement between an employee and an employer, whether it is a former one or a current one, by leaking classified information constitutes for the application of this act (Anonymous, 2012).

Divulgence of Confidential Information and Considerations

May ought to consider various confidentiality factors before indulging in any discussions about the new sales promotion. The considerations include the degree of importance, the organization places on the information and the cost it would cost to the company. If the information is novel and valuable to customers in a way that would damage and finish the chances of May's organization to compete, then she should not divulge into any topic or matter that could endanger the organization's productivity. Moreover, talking about the classified information can also lead to May's distorted image (Sias, 2008).

False and Deceptive Advertising, and Customer Claims

Customers have the right to know the truth about what the marketers show and sell to them. However, the customers cannot directly sue the Dracca. The Lanham Act protects the competitors not the consumers. Companies competing ...