Cameco employed Gedicke as a salaried traffic manager. Gedicke’s primary duty was arranging transportation of Cameco’s food products to retail stores by common carrier. His duties included coordinating Cameco’s shipping schedules, negotiating the lowest possible shipping rates, and supervising the warehouse employees who loaded the trucks. Without telling Cameco, Gedicke formed Newton Transport Service, which Gedicke operated primarily out of his home. Acting on behalf of distributors or truckers, Gedicke arranged for the transportation of food products to retailers. 

Two of the distributors for which Newton Transport arranged transportation sold the same products as Cameco. On more than 600 occasions, Gedicke arranged for a trucker transporting Cameco’s goods also to transport goods for Newton Transport’s customers. However, the addition of Newton Transport freight actually enabled Gedicke to negotiate lower rates for Cameco. Gedicke admitted that he engaged in telephone conversations relating to Newton Transport’s business during his scheduled hours with Cameco. However, he took no more than 15 minutes per day for such matters and used his personal credit card in making such calls. Has Gedicke clearly breached his duty of loyalty? Explain.