A Nondisclosure Agreement primarily prohibits:

A Nondisclosure Agreement primarily prohibits:

• A. Not to solicit customers
• B. Patent ownership
• C. Hire relatives
• D. Use or disclose defined confidential information

Answer: (D)

NDAs protect sensitive information by limiting what a recipient can do with it. The core obligation is to keep defined confidential information secret and not disclose or use it beyond what the agreement permits. This prevents business data, trade secrets, or other proprietary details from falling into the wrong hands. Other topics reflected in the choices—not soliciting customers, patent ownership, or hiring relatives—are governed by different types of agreements or policies (non-solicitation covenants, invention assignment/IP agreements, and nepotism or HR policies, respectively). An NDA doesn’t primarily address those areas; its focus is confidentiality and restricted use of information. Common exceptions to an NDA include information that becomes public through no fault of the recipient, information already known to the recipient, information independently developed, or information disclosed under legal obligation.

NDAs protect sensitive information by limiting what a recipient can do with it. The core obligation is to keep defined confidential information secret and not disclose or use it beyond what the agreement permits. This prevents business data, trade secrets, or other proprietary details from falling into the wrong hands.

Other topics reflected in the choices—not soliciting customers, patent ownership, or hiring relatives—are governed by different types of agreements or policies (non-solicitation covenants, invention assignment/IP agreements, and nepotism or HR policies, respectively). An NDA doesn’t primarily address those areas; its focus is confidentiality and restricted use of information.

Common exceptions to an NDA include information that becomes public through no fault of the recipient, information already known to the recipient, information independently developed, or information disclosed under legal obligation.