Kourtney, Khloe and Kim, who are sisters, were laid off from their regular jobs due to the Covid-19 pandemic. They decide to make the best of the situation and form a partnership to create a product that would be in demand during social isolation. With combined experience in software engineering, education, and marketing, they agree to develop and market to educational institutions a software program designed to detect cheating during remote test taking. They call their partnership The Integrity Insurers. Because they are sisters and trust each other, they do not enter into a partnership agreement. They do agree that, once this product is on the market, they will return to pursuing their regular jobs. Kourtney soon discovers that Khloe and Kim are extremely capable and hard workers and begins cutting down the time that she devotes to the partnership. Soon, Kourtney is working on partnership business only one day a week. She spends the other days golfing. Kourtney brags to other golfers (masked and socially distanced, of course) about how ingenious and successful the software product will be. Kourtney attracts the attention of two other individuals, Kanye and Lamar, who are intrigued by the product and believe that it could be highly successful. Kanye and Lamar hire Kourtney as a consultant to help them explore the viability of creating a similar product. Kanye and Lamar agree to pay Kourtney $1500/week for her consulting services, which money Kourtney keeps for herself. During her consulting, Kourtney provides Kayne and Lamar with information that Kourtney learned while working with Khloe and Kim, including a list of educational institutions that had expressed interest in possibly purchasing cheat detection software. Eventually, at the urging of Kayne and Lamar, Kourtney leaves The Integrity Insurers before the software design is complete and becomes partners with Kanye and Lamar in developing software that will directly compete with The Integrity Insurers. Immediately after leaving The Integrity Insurers, Kourtney files a Notice of Dissociation from The Integrity Insurers with the Secretary of State. The Integrity Insurers released its software 57 days after Kourtney left to join Kanye and Lamar. Unfortunately, the software had a bug that exposed the users’ computer networks to hackers. Several universities were hacked, and incurred significant expenses in remedying the problems caused. CSON, a university that purchased the software on the first day of release, and that was damaged by being hacked, sues Kourtney, Khloe and Kim for the damages caused to its network. CSON’s initial contact regarding the software had been with Kourtney, and it was unaware that Kourtney had left the partnership at the time that it made the software purchase. Has Kourtney breached any fiduciary duties to The Integrity Insurers and Khloe and Kim? Which ones? What specific facts support the breach of each duty that you identify? [40 points] Is Kourtney entitled to be paid for her partnership interest in The Integrity Insurers? If so, how will the buyout price for her interest be calculated? When is Kourtney entitled to receive payment? [10 points] Will Kourtney be liable to CSON for the damages caused by the software? Why or why not? [10 points]