Acme Company is a research and development organization employing scientists and others to develop new electronic products in Virginia. Sam Smart, one of Acme's brightest but rudest R&D scientists, was fired by Acme for yet another unforgivable social blunder when he slandered his co-worker, Ethel Meek, in front of an assembly of company employees at a picnic. Smart files suit in a Virginia circuit court for breach of employment contract. Given these facts and, in particular, his "at will" status under Virginia law, which of the following is true concerning Acme's legal response:

1. Acme must file an answer to the suit or risk default judgement
2. Acme must file a motion to dismiss because the case has no merit
3. Acme could file a motion to dismiss, and, if its motion is not granted, then file an answer to the suit.
4. Acme need not respond to the suit because it has no merit under Virginia law.