Business Law

Scenario: Following 2 years of research and an investment of substantial funding, Coastal Company (CC) developed a new product that will produce substantial profits for CC.

CC learned that a competitor, National Sales and Marketing, Inc. (National) made and began to sell a nearly identical product to CC’s new product. CC learned from a reliable source that National paid a CC employee to obtain the plans for CC’s new product when it was in the development states.

A. Under what legal claim could CC sue National, and why?

B. If CC does sue National under this legal claim, what is the likely result and why?

Learning Activity #2

Read the following hypothetical case scenario and respond to the questions below.

Scenario: Sam’s Beauty School is a privately owned beauty school that trains cosmetologists to earn their cosmetology license to become hair stylists and colorists. Sam’s is open to the public for all hair services; students perform hair services for clients under the supervision of licensed cosmetologists that work at Sam’s.

Jan went the Sam’s to have her hair colored dark brown as she had done many times, although this was Jan’s first time as a client at Sam’s. Tom, a student trainee at Sam’s, colored her hair. Jan’s hair turned green and fell out within 24 hours. Jan had never had any problems with hair color previously.

Jan sued Sam’s for negligence. Who wins and why?

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