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The Agency Relationship


Upon graduating from college, Rita Morales was hired as a software consultant by IPQ Company, a large computer manufacturing and services company. Rita negotiated a high salary and even a nice signing bonus, yet after a few years of work she found that her spending often outstripped her earnings and savings. As her credit card bills piled up, Rita started her own consulting firm. Initially, Rita provided software consulting for her clients only on nights and weekends after she had finished her IPQ work for the day. As her business grew, she began seeing clients during normal weekday working hours and calling them from her office at IPQ. To find new clients, Rita downloaded IPQ's client information from IPQ's database. She contacted over 200 IPQ clients and asked them to switch from IPQ to Rita's business. Over two dozen IPQ clients switched to Rita.
  • Do you see any potential problems with Rita's actions?
  • What legally and practically can IPQ do to prevent Rita from taking its clients?
  • What would an ethical employee in Rita's position do if her income did not meet her expenses?










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