I was going through standard IV-- Duties to Employer subsection (A) Loyalty. I have a doubt in example 4.
The extract from the question says, " Bradley’s research director does not seek any exclusivity for Clay’s output"
However, the solution states that “unless Bradley gives permission to Clay and waives its rights to her wireless report, Clay would be in violation of Standard IV(A) if she were to immediately recommend to Winston the same transactions recommended in the report to Bradley.”
If bradley does not seek exclusivity for Clay’s output then why will she be in violation of the standard unless bradley gives permission to clay?
This is a tricky one but remember standard IV(A) states “Members and Candidates must act for the benefit of their employer… and not deprive their employer of the advantage of their skills and abilities, divulge confidential information, or otherwise cause harm to their employer.”
As Bradley Associates is Laura’s employer and allows her “unlimited access to research files” and able to use “whatever support facilities available…” Regardless of no contractual agreement about the use of Laura’s study project. Laura still has an obligation to let Bradley Associates, who is ultimately paying her for the project to decide the final use of the wireless report.
If Laura were to submit the draft to Winston & Co, a potential competitor, this is obviously not acting in the best interest of her employer (Bradley).