Marco Is a Clothing Designer Whose Business Is Failing

question 31

Multiple Choice

Marco is a clothing designer whose business is failing. He believes that he will be able to sell more of his clothing if he puts a Calvin Klein label on his items. Why is this not a good idea?

• A) Marco could be sued for passing-off.
• B) Marco could face an action in injurious falsehood.
• C) Marco could be sued for a negligent misstatement.
• D) Marco could face an action in conversion.
• E) Marco could be sued for trade slander.

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Definitions:

Authority

The right or power assigned to an individual or organization to make decisions, give orders, and enforce rules.

Disclose Identity

The act of revealing or making known the identity of a person or entity, often in legal contexts where anonymity is protected until disclosure is required.

Contract

A legally binding agreement between two or more parties that defines and governs the rights and duties of those parties.

Principal

The original amount of money invested or loaned, not including profits or interest.