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:

Kickbacks

Payments made in return for a favor or service, often illicitly and in breach of trust.

Shakedowns

Informally, the act of obtaining money, goods, or services through force, fraud, or threats, typically in a corrupt or illegal manner.

Traffic Fix

An ineffective or temporary solution to road traffic congestion and transportation challenges.

Posse Comitatus Act

A United States federal law that limits the powers of the federal government in using federal military personnel to enforce domestic policies within the U.S.