Telemarket Ltd

question 1

Essay

Telemarket Ltd.was engaged in the business of compiling and publishing telephone directories of industrial and commercial enterprises.Telemarket solicited these enterprises to include their telephone number and,if they wished,an advertisement in the directory for a fee and offered a range of graphic services to create the advertisements for the directory.Telemarket's directory was called INFOPAGES and a trade mark had been registered in that name with the associated book design and logo
Each year,new directories were prepared and sold to Telemarket's major customer,the telephone company,to include with its annual residential directory
Just before publication of the most recent directory,one of Telemarket's sales managers received a telephone call from a long-standing customer who inquired why Telemarket had approached him for a second time that year to insert an advertisement in the directory.The manager was surprised to learn this had occurred and suggested it must simply be a computer error,which would be immediately corrected.The customer persisted,however,and described a solicitation letter that he had received from a company called Telemart Ltd.The letter enclosed a clipping of the customer's own previous advertisement,which had been placed in the INFOPAGES directory.The clipping was stapled to an invoice for advertising similar to the invoice form used by Telemarket and bearing an almost identical logo.The customer assumed that Telemart was a division of Telemarket and had mistakenly solicited twice for the upcoming annual directory.The manager assured the customer that Telemart was in no way related to Telemarket and that the recent letter was not a Telemarket solicitation in any way.When the sales manager contacted several of its other large customers he learned that they,too,had received such letters,clippings of their own advertisements and invoices.
Discuss the rights,if any,of Telemarket in this situation and describe what steps it may take to alleviate this problem including any remedies which may be available.

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Definitions:

Economies Of Scale

The situation when a firm’s average total cost of producing a product decreases in the long run as the firm increases the size of its plant (and, hence, its output).

Excess Production

The situation where more units of a product are produced than are demanded, often resulting in surplus inventory.

Economic Theory

Economic theory encompasses models and principles that explain the functioning of economies, markets, and the behavior of economic agents. It seeks to understand how resources are allocated, prices are set, and wealth is distributed.

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded, typically downward sloping.