Naxon Opened a Retail Computer Shop Which He Called Computer

question 6

Multiple Choice

Naxon opened a retail computer shop which he called Computer Haven Ltd.He used colours and signs similar to those used by Computerheaven Ltd.,a very successful computer store 5 kilometres away.After Naxon was in business for about five months,the directors of Computerheaven Ltd.noticed that their sales had dropped.On these facts,which of the following is true?

• A) Computerheaven has no cause of action against Naxon because ours is a free society and competition in all forms is encouraged by our political and legal system.
• B) Computerheaven could successfully sue Naxon for the tort of injurious falsehood.
• C) Computerheaven could successfully sue Naxon for the tort of passing off if it can prove that the name, signs, and colours used by Naxon were likely to mislead the public.
• D) Computerheaven could successfully sue Naxon for the tort of innuendo.
• E) Computerheaven could successfully sue Naxon for breach of contract.

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Definitions:

Cost-Plus Contracts

Agreements where a contractor is paid for all construction-related expenses plus a contracted profit.

Profit Markup

The amount added to the cost price of goods to cover overhead and profit; a measure of the profit margin.

Restructuring Write-Offs

Expenses incurred when a company reorganizes its operations, including costs related to laying off employees, closing facilities, or exiting certain market segments.

Company Balance Sheets

A financial statement that shows an organization's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial condition.