In designing a proprietary information protection program, the area of greatest vulnerability is:
A. Personnel files
B. Employees
C. Computers
D. Marketing data
E. Perimeter boundaries
To effectively involve the law for the protection of sensitive information, the owner of the proprietary information must be able to show "objective indications of attempts to protect secrecy." Which of the following has been recognized in the past as such an indication?
A. Use of warning signs to alert employees to sensitive data and the places it is stored
B. Separately storing sensitive information in security containers with the appropriate security precautions
C. Special instructions providing a "need-to-know" basis
D. Restrictions to nonemployee access to places containing sensitive information
E. All of the above
Which of the following is not a correct statement as a general rule involving the protection of proprietary information?
A. As a class, employees are the largest group of persons bound to secrecy because of their status or relationship
B. By operation of common law, employees are presumed to be fiduciaries to an extent that they may not disclose secrets of their employers without authorization
C. Other than the employees, any other persons to be bound to secrecy must agree to be so bound
D. Any agreements to be bound must always be in writing and are not implied from acts
The class of person under a duty to safeguard a proprietary secret is known as a(n):
A. Agent
B. Proprietary security employee
C. Fiduciary
D. Business associate
E. None of the above
It is important for employees to know whether confidential information is a trade secret, or some other confidential material, because:
A. If it is a trade secret, the employee may be prevented from disclosing t by injunction.
B. If not a trade secret and it is disclosed, the employer must take action after the disclosure and must be able to prove some actual damage in order to recover
C. If not a trade secret, the information once disclosed is no longer defendable
D. If not a trade secret, the information once disclosed cannot be further prevented from disclosure by an injunction
E. All of the above.
Proprietary information is:
A. Private information of a highly sensitive nature
B. Information that must be classified according to executive order of the U.S. Government
C. Sensitive information that is classified according to executive order of the U.S. Government
D. Anything that an enterprise considers relevant to its status or opera
Which of the following is generally not true in regard to trade secrets?
A. The more a business narrowly defines what it regards as a secret, the easier it is to protect that body of information.
B. It is difficult to protect a trade secret that can be found in publicly accessible sources.
C. Secret information does have to be specifically identifiable.
D. Secret information must be effectively protected.
E. None of the above.
In regard to a trade secret, it may be decided that its disclosure by another was innocent, rather than wrongful, even in the case where the person making the disclosure really was guilty of malice or wrong intent. This situation may occur when:
A. The trade secret was not registered
B. The trade secret did not involve national defense information
C. The trade secret was not in current use
D. There is absence of evidence that an owner has taken reason- able precautions to protect confidential information.
E. All of the above
To be within the definition of a trade secret, sensitive information must meet which of the following criteria?
A. Individuals to whom it is disclosed must know it is secret.
B. It must be identifiable.
C. It must not be already available in public sources.
D. There must be some obvious indication that the owner is attempting to prevent its unauthorized disclosure.
E. a, c, and d.
F. All of the above.
According to the "restatement of the law of torts," a trade secret is:
A. All information about a company that the company desires to protect
B. Any formula, pattern, device, or compilation of information that is used in one's business and that gives that business an opportunity to gain an advantage over competitors who do not know or use it
C. Information about a company that is registered with the U.S. Patent Office
D. Both A and B
E. All of the above
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