The Government of country A had prohibited the use of a certain type of cola known as Celus Cola in the manufacture of soft drinks because research had revealed that it made people who took the soft drink become hyper and easily loose control of their mental faculties. A manufacturer of a soft drink Shinix placed an advertisement on TV and in newspapers informing the consumers that his soft drink Shinix does not use Celus Cola in its manufacture. His competitor of a soft drink Shanex seeks your advice since he also does not use Celus Cola in the manufacture of his soft drink. The company name of Shanex has not been registered as a trademark. Which of the answers is correct for legal action?

Question

The Government of country A had prohibited the use of a certain type of cola known as Celus Cola in the manufacture of soft drinks because research had revealed that it made people who took the soft drink become hyper and easily loose control of their mental faculties. A manufacturer of a soft drink  Shinix  placed an advertisement on TV and in newspapers informing the consumers that his soft drink  Shinix  does not use Celus Cola in its manufacture. His competitor of a soft drink  Shanex  seeks your advice since he also does not use Celus Cola in the manufacture of his soft drink. The company name of  Shanex  has not been registered as a trademark. Which of the answers is correct for legal action?

Answer

He can sue for unfair competition since by inference the advert would mislead the consumers into thinking that the competitors soft drinks uses the prohibited Celus Cola in its manufacturing [c]

Answer

He can sue for trademark infringement since his competitor is using a similar name for his soft drink which is likely to cause confusion in the minds of the consumer regarding the particular soft drink being referred to [a]

Answer

He cannot sue for damages since his soft drink or that of any other competitor is not mentioned by name [b]

Answer

He has a good legal claim for damages since his competitor was always fabricating lies about his company [d]

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The Government of country A had prohibited the use of a certain type of cola kno...

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