Hearty Meat Sandwiches Is a Large-Sized Chain of Hamburger and Sandwich

question 50

Essay

Hearty Meat Sandwiches is a large-sized chain of hamburger and sandwich shops.Although they have been operating in western Canada for 10 years, they had never managed to crack the Quebec market.A few years ago, on the advice of their lawyer, they had registered several trademarks, including their name, their logo (a cartoon heart shape between two pieces of bread), and their slogan "Smarties eat at Hearty's." When Hearty's opened their first Quebec store in Montreal last year, they ran a huge advertising campaign, including bilingual radio spots and ads on television.??When opening day arrived, they were surprised that the number of new customers they managed to attract was far less than in other, smaller towns.Only later did they discover that Montrealers appeared to be flocking to another hamburger joint in town, Hardy's Burgers, owned and operated since 1997 by Jacob Hardy.Needless to say, the owners of Hearty's are miffed.They admit that they probably should have done better research before the opening, but still think it's unfair that their ads are working to their competitor's benefit.They have come to you for advice regarding any recourse relating to their trademark.Advise them of any action they may wish to pursue, remedies they may seek, and the benefits and detriments of pursuing their case.

---

Definitions:

Profit Maximizing

The procedure by which a company figures out the ideal price and level of production for maximizing earnings.

Total Revenue

Total revenue refers to the overall amount of money generated by a business from its sales activities before any expenses are subtracted.

Break-Even Point

An output at which a firm makes a normal profit (total revenue = total cost) but not an economic profit.

Total Revenue

The total income received by a firm from selling its goods or services, calculated as the quantity sold multiplied by the selling price per unit.