summart for midterm - 1 Palming off one of the oldest...

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1- Palming off , one of the oldest unfair methods of competition, occurs when one company sells its product by leading buyers to believe it is really another company’s product. For example, many cases of palming off took place during the 1980s, when Cabbage Patch dolls were popular, in demand, and scarce. Many replicas were made and called “Cabbage Patch dolls” even though they were not manufactured by Coleco, the original creator. Establishing that someone is palming off requires proof that consumer confusion is likely because of the appearance or name of the competing product. For example, labeling a diamond DeBiers instead of DeBeers is likely to cause confusion. Competitors’ packaging with the same colors and design as an original product creates confusion. Potential buyers are likely to be confused as to who actually made the product and who has what market and quality reputation. Misappropriation Some businesses have a trade secret —chemical formula, procedure, customer list, data, or device that only that business has. Generally, these types of secrets should be given patent or copyright protection. However, those that do not qualify for these federal statutory protections (discussed earlier in this chapter) have the tort of misappropriation as protection. Misappropriation is conversion of a trade secret, such as a customer list, a proposed marketing plan, or new strategy to personal use, including use for self-benefit or the benefit of a new employer. For example, an employee who takes proprietary information from her employer and uses it, such as a customer list, to start a competing business is guilty of misappropriation. Most companies put noncompete clauses in their employment contracts that address the issue of taking trade secrets to a new company or forming a competing company. Those clauses are covered in Chapter 16 . What Can a Business Own? Real Property The Nature of Real Property Land Real property consists of more than just land itself; it is a bundle of rights. An old saying in property law is, “The owner of the soil owns also to the sky and to the depths.” When you own real property, you own the surface that we actually see and upon which buildings are placed, but you also own air rights and mineral rights . Air Rights Air rights in real property consist of the right to use the air above the surface land that is described as your real property interest. Your land interest can actually be separated into two interests so that you can keep the surface rights and transfer the air rights. The ownership of air rights is important in large cities because building up is the only way to expand available space in cities limited in opportunities for expansion on the ground. For example, in New York City, the Met Life building is built in the air rights above Grand Central Station. This fifty-nine-story building occupies the air rights above the station. The foundation of the building rests on the
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This note was uploaded on 10/28/2011 for the course BUSINESS ACCT 305 taught by Professor Poletti during the Spring '09 term at DeVry Columbus North.

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summart for midterm - 1 Palming off one of the oldest...

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