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Multiple Choice

An agent who uses confidential information to trade in violation of a confidentiality duty commits which wrongdoing?

A breach of confidentiality is tested here. When an agent is entrusted with confidential information, a duty to keep that information secret and not use it for personal gain is owed to the principal. Using that information to trade violates that duty, making it a breach of confidentiality. The other options describe physical conduct or restraint (assault, battery, false imprisonment) and do not relate to how information is handled, so they do not fit the scenario. This action could also implicate broader fiduciary duties or misappropriation, but the term that best matches the described wrongdoing is breach of confidentiality.

A breach of confidentiality is tested here. When an agent is entrusted with confidential information, a duty to keep that information secret and not use it for personal gain is owed to the principal. Using that information to trade violates that duty, making it a breach of confidentiality. The other options describe physical conduct or restraint (assault, battery, false imprisonment) and do not relate to how information is handled, so they do not fit the scenario. This action could also implicate broader fiduciary duties or misappropriation, but the term that best matches the described wrongdoing is breach of confidentiality.