Trader Joe's Recently Filed an Opposition Against a Company Applying

question 187

Multiple Choice

Trader Joe's recently filed an opposition against a company applying to trademark the name "Trader Schmo." Why should Trader Joe's rigorously protect its trademarked name?

• A) Trader Joe's risks losing its status as a generic retail grocer.
• B) In order to maintain the use of its widely recognizable trademark, Trader Joe's must prevent its name (or too similar a name) from being used by others.
• C) The Robinson-Patman Act conferred ownership of the "Trader" name and other trademarked property to Trader Joe's.
• D) The government will file charges for trademark infringement only if Trader Joe's, the owner of the trademark, has documented proof of wrongdoing by Trader Schmo.
• E) By protecting its trademark, Trader Joe's is protecting the entire retail grocery industry from indirect competition.

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Definitions:

Willingness to Pay

The maximum amount a consumer is ready to spend for a good or service.

Surplus

The situation where the quantity supplied of a product exceeds the quantity demanded at a given price.

Negative Externality

An economic situation where a third party is negatively affected by the actions of others, typically not reflected in the cost of those actions, such as pollution.

Common-Resource Problem

A dilemma in the management of resources that are available to all but are susceptible to overuse and depletion because they are not excludable.