Certified Protection Professional (CPP) Practice Exam

Which statement is incorrect regarding the protection of proprietary information?

1. Oral agreements are enforceable

2. Written agreements are preferred

3. Implied agreements can exist

4. All agreements must always be in writing

The correct answer is: All agreements must always be in writing

The correct choice highlights that not all agreements regarding the protection of proprietary information need to be in writing. While written agreements are certainly preferred due to their clarity and enforceability, oral and implied agreements can also be valid under certain circumstances. This flexibility allows for various methods of protecting proprietary information, acknowledging that many business relationships and understandings can be based on verbal commitments or assumed expectations, rather than formalized documents. The notion that all agreements must always be in writing is too restrictive and does not account for situations where parties have operated under an understanding without a formal written contract, which can still be enforceable based on the specific context and jurisdiction. Additionally, such a strict requirement would not consider the practicalities of day-to-day business interactions, where written documentation may not always be practical or feasible. Therefore, the understanding that not every type of agreement regarding proprietary information must be documented in writing is an important aspect of protecting such information effectively.