Business Law of Compaq Assignment Report

Running head- BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

Business Law1
Answer to 1
Passing off is termed as the remedy that a trader gets to restrict another trader or seller
from manufacturing or selling any goods that are deceptively similar to that of the trader. It
consists of using a similar name or similar products. In this, the issue arises due to Sydney
and Nancy using the name of Compact for their business that was similar to another company
Compaq Business (Bently & Sherman 2014). Not only that they admired the colour
combination of the logo so much that they used a similar colour for their logo and named
their service that was similar to the Compaq Business. In initiating a suit The Compaq
business shall be the plaintiff and Sydney, and Nancy shall be the defendants for using such
similar names and logo. Compaq shall get the remedy of protecting their business and not
letting them use their name or logo for the business. Specific losses to be addressed include
the loss in their business due to a similar brand and the customer that may think Compact as
Compaq.
Answer to 2
Interference in the contractual relations refers to the act where any person knowingly
and to impose harm to the business or the economic activities of the other person harms the
business of the other party (Hesse, 2014). It relates to this case as both of the people Nancy
and Sydney knew the list of the customers of National. Moreover intending to reduce their
market and make more profit, they persuaded the customers of the nationals by providing
service at a much lower rate so that they could change their preference from National to their
company Compact. Not only that they persuaded one of their biggest clients that were
International Tire Inc. So evidently, the switch of the customers had impacted the Nationals
in a negative way for which they might have suffered huge monetary loss. The Nationals

Business Law2
shall be the plaintiff, and Nancy and Sydney shall be the defendant. Nationals shall be
eligible for injunction relief and punitive damages.
Answer to 3
In this case, the proclamation of Nancy for the persuasion to the customers in order to
change their business preference shall amount to defamation. Both Nancy and Sydney
persuaded the customers to switch their preference that must have been a huge business for
the Nationals. So as per the provisions of defamation, any sort of harm imposed to the
reputation of the person in cases of stating the negative points to any other third person shall
amount to defamation (Young, 2017). In a way, they were harming the reputation of the
Nationals by persuading and provoking their clients. In this case, the form of defamation used
was slander as it was oral. The defence, in this case, would be a fair report of the proceeding
and blameless propagation.
Answer to 4
The restrictive covenants signed by both of them with the nationals shall be
enforceable in the court of law. These covenants are used in the cases of the employment
contracts and are enforceable after the termination of the employment contract of the
employee. Through this, the employer generally imposes various restrictive measures that
prohibit the employees from joining any similar company or start up a new business of
similar kind. In this case, they signed a contract with the nationals that after three years from
termination they shall not start up a new business of similar kind or join a competitive
company, but after one year only they start up a competitive business that was a breach of the
contract.