Omni Consumer Products (OCP) hired Richard “Dick” Jones, pre…
Questions
Omni Cоnsumer Prоducts (OCP) hired Richаrd “Dick” Jоnes, president of the compаny, to invent а robot, and the board of OCP gave him the power as president to invent a robot sentry to be used by police for “urban pacification.” The robot sentry was to bear the trademark “ED209.” Dick Jones also hired Seymour Berkhoff to help develop the operating system and write the software for the ED209 robot. While testing the ED209 robot in the boardroom, the robot malfunctioned and Mr. Kinney, a young OCP executive, was killed by the robot. The Chairman of the board was “very disappointed” in Dick Jones, and noted that the delay would set back the company significantly. Dick Jones knows that the information about the ED209 robot’s malfunction is not public information, and that if it were, it would cause the company’s stock to dip. Dick also knew that the Chairman of OCP would have to make an announcement any moment that deployment of the ED200 robot would be delayed. He quickly calls up his stockbroker, and tells him to sell 25 percent of his OCP stock. When the Chairman announced the delay in deployment of the ED209 robot later that afternoon, the company’s stock fell. Dick’s sale of his stock prevented his own potential loss of almost 10 million dollars. What U.S. law did Dick Jones violate?
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