Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What does the federal Uniform Trade Secrets Act (UTSA) provide to companies harmed by theft or misuse of trade secrets?

1. Compensation and punitive damages

2. License revocation and asset seizure

3. Injunctions and property restitution

4. Tax exemptions and fines

The correct answer is: Compensation and punitive damages

The federal Uniform Trade Secrets Act (UTSA) seeks to protect businesses from the unauthorized acquisition, disclosure, or use of their trade secrets. This act primarily provides businesses with recourse in the form of legal remedies, including the ability to seek injunctions against further misuse of their trade secrets and the potential for monetary compensation for damages suffered due to the theft or misuse. While the act does indeed allow for compensation—covering actual losses and possibly punitive damages to deter wrongful conduct—important to note is that it facilitates remedies that aim not only to make the harmed party whole but also to punish and deter the infringing actions. The other options, while they may contain elements of legal responses to theft or infringement, do not accurately capture the specific provisions that the UTSA outlines. For instance, license revocation and asset seizure pertain more to regulatory actions than to the remedies focused on trade secrets. Tax exemptions and fines are not relevant considerations under the UTSA, highlighting how the chosen response is focused directly on addressing the specific harm of trade secret misappropriation through compensation and punitive avenues.