Question 3: If Reese was a director and not co-CEO of VAL, would that alter her ethical obligations? Why or why not?

Question 4: In your opinion, what difference is there between using and disclosing confidential information? If Reese is legally allowed to disclose and use the confidential information, is it ethical to do so?

Vibe Incorporated (Vibe), a corporation registered in the state owes a fiduciary obligation to VAL as a co-CEO. On the other of Arizona, is in the business of manufacturing measurement hand, she is still an operations manager of Alberta Ltd, and tools used in heavy industry. John Smith (Smith) is the presi- having worked for the company for over 10 years, she believes dent and chief executive officer of Vibe. Alberta Measurement she owes her utmost loyalty to it. The joint venture agreement Devices Limited (Alberta Ltd) is an Alberta corporation in the was poorly drafted and does not contain any confidentiality business of supplying and distributing measurement instru- or CEO obligations provisions that would assist Reese in her mentation used in the oil and gas, petrochemical, construction, decision as to whether she should disclose Vibe's confidential and manufacturing industries. Alberta Ltd entered into a joint information to Alberta Ltd. venture agreement with Vibe, pursuant to which a Canadian corporation known as Vibe Alberta Ltd (VAL) was established. Critical Analysis Questions The primary purpose of the joint venture between the parties, 1. What, if any, are Reese's ethical obligations to VAL, as outlined in the joint venture agreement, was to resell Vibe Alberta Ltd, and Vibe? products in Canada. Smith was appointed as co-chief executive 2. Based on the scenario, should Reese disclose Vibe's officer of VAL, together with Jane Reese (Reese) on behalf of Al- confidential information to Alberta Ltd? Why or why not? berta Ltd. For Reese, being appointed co-CEO was a promotion 3. If Reese was a director and not co-CEO of VAL, would that came with a hefty pay increase. In her capacity as co-CEO, that alter her ethical obligations? Why or why not? Reese learned of Vibe's confidential information, which she can 4. In your opinion, what difference is there between using use for the benefit of Alberta Lid and to the detriment of VAL and disclosing confidential information? If Reese is and Vibe. Reese feels conflicted. On the one hand, she feels she legally allowed to disclose and use the confidential information, is it ethical to do so