The Enerstretch Is an Exercise Device Whose Trademark Has Been

question 5

Essay

The Enerstretch is an exercise device whose trademark has been registered,although the device itself has not been patented.Sales had been going well,until the Enerstretcher came along.A cheaper copy of the Enerstretch,the Enerstretcher is made with less resilient springs.As a result,the Enerstretcher was prone to snap,injuring its user.The media ran several stories about the victims,and as a result of the bad press,the makers of the Enerstretcher pulled their products off the market.Because of the bad press,the makers of the Enerstretch quickly saw their sales drop as well.You are a risk manager for Enerstretch.Does your company have a case? If so,what kind of remedies can they avail themselves of? Support your answer.

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Definitions:

Firm Commitment Underwriting

Underwriter buys the entire issue, assuming full financial responsibility for any unsold shares.

IPO Underpricing

The phenomenon where the initial offering price of a stock is set lower than the market price on its first day of trading.

Direct Private Long-term Debt Financing

A type of financing where companies borrow money directly from private investors, bypassing traditional bank loans and public markets.

Public Issues

The process by which a private company goes public by offering its shares to the public for the first time.