In Jet Courier Service v. Mulei, which action during employment most clearly constitutes a breach of loyalty?

• A. Planning to start a competing business after leaving, with no customer contact
• B. Forming a competing company while still employed and soliciting customers
• C. Secretly planning to compete and actively soliciting customers before leaving
• D. Refraining from any action until leaving the firm

Answer: (C)

The main idea is the duty of loyalty an employee owes to their employer, especially not to compete with the employer or solicit its customers while still in the job. The best choice shows both a hidden intent to compete and actual steps that hurt the employer while the relationship still exists. Secretly planning to start a competing business and actively soliciting the employer’s customers before leaving demonstrates a clear conflict of interest and misuse of insider access, contracts, and relationships. It shows disloyalty in both mindset and conduct while the employee remains bound to the employer, making it the most direct breach of that loyalty duty.

Other scenarios either occur after the employment ends or involve less combination of intent and action during the employment. Planning to start a competing venture after leaving, with no customer contact, does not harm the employer during the employment period. Forming a competing company while still employed and soliciting customers is a serious breach, but the pre-departure concealment plus active customer poaching before leaving makes the chosen option the clearest case of loyalty breach. Refraining from action until after leaving does not violate loyalty during employment.