Cengage Advantage Books: Essentials of Business Law 5th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 13

Finn learns that, despite his stellar record, he is being paid less than other salespeople at Barry Co., so he decides to start his own company. During his last month on the Barry payroll, he tells all of his clients about his new business. He also tells them that Barry is a great company, but his fees will be lower. After he opens the doors of his new business, most of his former clients move with him. Is Finn liable to Barry
(a) No, because he has not been disloyal to Barry-he praised the company.
(b) No, because Barry was underpaying him.
(c) No, because his clients have the right to hire whichever company they choose.
(d) Yes, Finn has violated his duty of loyalty to Barry.