Mechanical engineer Vadislav Ircha was hired by Seanix Technology Inc. in March 1995 to design chassis and cases for computers. For the first few months, Ircha spent most of his time meeting with a subcontractor who was developing a case for Seanix’s newest motherboard. Ircha soon realized, however, that the subcontractor’s design was flawed, so he began working on a design of his own. Lacking proper design facilities at Seanix’s office, he did most of the work at home, and was able to produce a completed mock-up of a new “swing- out” case in early 1996. Ircha’s design was so impressive that the president of Seanix offered him a 30 percent salary increase and a bonus for a European vacation. Ircha, however, refused the president’s offer, left the company, and claimed rights in the case. Seanix brought action for rights in the case. What legal issue(s) must be resolved? Outline the law that governs them. How could Seanix have prevented this dispute?