MBA05-W4-A3 Dracca became aware that one of its competitors, TrendBaby, Inc., was soliciting...

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MBA05-W4-A3 Dracca became aware that one of its competitors, TrendBaby, Inc., was soliciting information from one of Dracca’s employees, Bob Shumaster. Shumaster was apparently detailing product assembly information that was unique to Dracca and explaining to TrendBaby how this assembly strategy saved Dracca thousands of dollars each month. Dracca discovered that TrendBaby actually hired Shumaster to provide this information, and that Shumaster was using Dracca company computers to relay the proprietary information to TrendBaby via email.
	
Document Preview: MBA05-W4-A3Dracca became aware that one of its competitors, TrendBaby, Inc., was soliciting information from one of Dracca’s employees, Bob Shumaster. Shumaster was apparently detailing product assembly information that was unique to Dracca and explaining to TrendBaby how this assembly strategy saved Dracca thousands of dollars each month. Dracca discovered that TrendBaby actually hired Shumaster to provide this information, and that Shumaster was using Dracca company computers to relay the proprietary information to TrendBaby via email.Meanwhile, Sally May, a sales representative for Dracca ran into her neighbor who is a sales representative from one of Dracca’s competitors. May is friendly with her neighbor, and drives her children to school each morning. The families get along well, and often have barbeques and other social events together in the neighborhood. As part of the small talk, May mentioned to her neighbor the new sales promotion Dracca was offering retailers on its full line of products. Although the promotion had been mentioned in trade publications, May’s neighbor had not yet heard about it and was curious about its details.May worked closely with the marketing department. Her colleague in marketing, Rick Martin, developed the new slogan for Dracca’s crib products: “A Full Night’s Sleep.” In the Internet advertisement for this campaign, Dracca claimed that babies using its crib products slept two hours longer than other infants. This was an unverified statistic. Dracca’s crib sales increased 50 percent because of this advertisement, but they received many complaints from unsatisfied parents.Dracca sold the cribs to eight different retailers across the United States. Dracca charged six of the retailers $75 per unit, but they only charged the other two retailers $50 per unit because they were Dracca’s best retail customers. Due to the price differential, the two retailers with the $50 per unit price were responsible for 96 percent of Dracca’s...

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Dracca Ethical Standpoint
Running Head: Dracca Ethical Standpoint   1
Dracca Ethical Standpoint 
 
 
[Type the author name] 
29-Aug-13
Dracca Ethical Standpoint   2
Introduction 
 The paper analyzes the ethical standpoint of Dracca. The company has discovered that 
one of its competitors, TrendBaby, Inc., had been soliciting information from one of the 
company’s employees, Bob Shumaster. The paper conducts the situation analysis of the level of 
offenses these employees have committed and various ethical breaches on their part.  
Analysis 
Question: Did Shumaster commit any criminal acts? Does TrendBaby have any liability 
related to Shumaster’s action? Why or why not? Rely on legal principles to support your 
conclusion. 
Yes, Shumaster had committed a criminal act. Shumaster has compromised on the 
sensitive information of Dracca and sold it to one of the company’s major competitors. The act 
pertains to theft of information, overruling the employee law of maintaining confidentiality of 
the information. This is a criminal conspiracy and Shumaster can certainly be tried for this 
criminal act.  
TrendBaby does have a liability related to Shumaster’s action. The company has resorted 
to illegal and unethical act to resort sensitive information of a competitor. This certainly has legal 
remedies wherein Dracca can legally sue TrendBaby for all tangible and intangible losses. 
Dracca Ethical Standpoint   3
Question: Would the Computer Fraud and Abuse Act apply to Shumaster’s use of 
Dracca’s computer to email misappropriated trade secrets to a competitor? Rely on legal 
principles and case law to support your conclusion. 
 Yes, the computer fraud and abuse act would apply to the Shumaster’s use of the 
computer of Dracca towards emailing the misappropriated trade secrets to the competitor. The 
Computer Fraud and Abuse Act restrict the intentional access of a computer without 
authorization or even exceeding authorization permissions (Redfern, 2004).

MBA05-W4-A3 Dracca became aware that one of its competitors, TrendBaby, Inc., was soliciting information from one of Dracca’s employees, Bob Shumaster. Shumaster was apparently detailing product...

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