Analyzing the Compact Business Systems Case Study: Management 3

This case study analyzes the business decisions and legal issues faced by Compact Business Systems, a company started by former employees of National Business Systems. The analysis covers several legal aspects including passing off, where the company's name and branding closely resemble a competitor, and the implications of restrictive covenants signed by the founders. The study also addresses contractual relations, where a third party interferes with existing agreements, and defamation, where false information damages the reputation of a competitor. Furthermore, it examines issues of trespass, fraudulent preference, and accounting irregularities. The case explores the potential liabilities and remedies for each issue, offering insights into business law, ethics, and management practices, including the actions of agents, suppliers, and the implications of bankruptcy.

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Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................2
Answer 3..........................................................................................................................................2
Answer 4..........................................................................................................................................3
Answer 5..........................................................................................................................................3
Answer 6..........................................................................................................................................4
Answer 7..........................................................................................................................................4
Answer 8..........................................................................................................................................4
Bibliography....................................................................................................................................5

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Answer 1
Passing off is known as an act in which an individual have a tendency to take someone’s
property or business property that possibly services and goods to present them as his or her
(Nisar, 2012). This occurs on the basis of competitors in the market that offer similar kind of
services and products (Adams, Khan, & Raeside, 2014). In which one organization offers similar
name products to confuse customers (Groebner, et al., 2013). It also happens within the Sidney
and Nancy case study in which they definite to come up with business compact business systems
to repairing computers. There is already same business that offer similar services recognized as
Compaq business system. Sidney and Nancy are striking likeness to confuse customers. Plaintiff
within the study will be that Compaq business system will appeal to Sidney and Nancy to having
mimicked functions that confuse customers. It will unnecessary led to suffer from losses, create
the bad reputation, and lose the customers.
Answer 2
In contractual relations, a third party tries to between the agreement and attempt to gain
the benefit from one of party (Fernandes, Gouveia, & Pinho, 2014). In the case study third party
tries to offer more effective services with the objective to win one party and deliver absolute
services and products. Plaintiff will be national business systems. Nancy and Sidney defendants
within the case as compact business system came between the contract which was between the
international tire Inc. and national business system that lead to canceled it. They did it by the
intention to gain benefit from carrying out repairing of computers in international tire Inc. that
was exertion of national business system. They did it through convincing and offer services of
repairing at low cost. Remedies are that national business system should sue compact business
system. Another option will be court and compensate to international tire incorporation regarding
harms, help to recover from losses.
Answer 3
In the case study defamation occurs while compact company system tries to give wrong
information regarding national business systems that lead to damage reputation. It is done by

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convincing international tire Inc that is biggest customer and tells customers as national company
system charging more regarding services and products by using the low quality software within
the repairing of computers. National business system will be plaintiff as sued compact business
systems. Rise of bad reputation regarding products and services directly cause the reputation of
business and top customers cancel the agreements. Nancy and Sidney will be defendants due to
passing of false information. The intend behind it was to gain the contract. They can defense that
just warning the customers regarding concerns of services from national company system and
suggesting consumers to repair computers from compact company system. Remedy is that
national company system should sue compact company system as had not sufficient evidence
regarding information and Nancy and Sidney would found guilty.
Answer 4
Restrictive covenant which were engaged can still be valid if Sidney and Nancy
terminated and not work within the business. Restrictive covenant was refer that any workers not
start other business same as currently position of working and remain the competitive aspect with
present organization. Restrictive covenant signed by Sidney and Nancy, hence supposed that not
start any company linked to one they were working for but went in the future to begin a new
company. There will be a non-compete clause which does not present restrictive covenant with
factors such as organization location hence cannot restrict for starting other business. Sidney and
Nancy case study it not have any kind of restrictions regarding location and not enforceable.
Answer 5
In case study trespass issues takes place while organization constricted van to compact
company system and find the agents to break within the small business system organization.
They take away particular assets to compensate for damaged van and get the van back. Agent
can be mentioned as trespasser as used to get delivery van. Compact company system will have
problem with agents and organization which had contracted them the van which is lessor. Agent
has to gain access regarding facilities of compacts business without access permission and forced
to break to achieve access to properties. Defendant will be agents as compact company system
sue them regarding breaking in business steal facilities. Compact will be plaintiff and ask
regarding compensation from agents for breaking properties and have caused regarding fire

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break down. Possible outcome either agent and landlord demand payment and property or
remedy will be case between compact business system and landlord.
Answer 6
Trespasser is an agent and can be within the position in which they can have action
against compact business system. They were carrying out work of getting van and properties
which help to recover van damages after getting the delivery van. They lacked any kind of access
to compact company system. Plaintiff will be compact company system as agent has not right to
access properties without power specified to them regarding access of feature. Defendant will be
agent as accessed compact company system without authorization of gain access to properties.
Answer 7
Sidney and Nancy will pay some suppliers as declare bankruptcy. They provided fund to
three suppliers as build good relations and not want to break them. Payment to three suppliers
refers as fraudulent preference. When they like to manage the bankruptcy then ensure to treat
everyone within the similar way. Further steps they took as sold inventory that present to
fraudulent conveyance. It is because as did with intend to transfer as not available for creditors.
If bank likes to get inventory can fail to be within a situation to take inventory as inventory no
longer preserved by Sidney and Nancy. The reason would be to avoid bank from taking
inventory and recover loan.
Answer 8
Accounting of Lucky not have important action against Compact company system as
while contract was engaged they brought within the computer headquarter regarding agreement
to upgrade case as they hires a case within the matter of stolen or loss products which did not
sign. Due to interference which occurred and work not carried out as computer was stolen. The
compact not required to pay for loss as teams had no insurance regarding loss of goods that
compensated regarding loos goods. If lucky had insurance than most mutual remedy will be
payment for product that loses.

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Bibliography
Adams, J., Khan, H. T., & Raeside, R. (2014). Research methods for business and social science
students. SAGE Publications India.
Fernandes, R., Gouveia, B., & Pinho, C. (2014). Exploring modes of entry into international
markets: direct investment or contractual relations. Journal of Business Economics and
Management, 15(1), 56-73.
Groebner, D. F., Shannon, P. W., Fry, P. C., & Smith, K. D. (2013). Business statistics. Pearson
Education UK.
Nisar, S. (2012). Skincare and nail care markets are found to be distinct in a passing off
claim. Journal of Intellectual Property Law & Practice, 7(10), 708-709.