Naxon opened a retail computer shop that he called Computer Haven Ltd.He used colours and signs similar to those used by Computerheaven Ltd.,a very successful computer store three kilometres away.After Naxon was in business for about five months,the directors of Computerheaven Ltd.noticed that their sales had dropped.On these facts,which of the following is true?

Question

Quizplus · Accepted Answer

Computerheaven Ltd. could potentially have a case for the tort of passing-off against Naxon if they can prove that the similarity in name, signs, and colours used by Naxon is likely to mislead the public into thinking that they are associated with or endorsed by Computerheaven Ltd. Passing-off is a common law tort that protects the goodwill and reputation of businesses, and prevents others from unfairly benefiting from their reputation and success. The other options (B, C, D, and E) do not apply to this scenario.

Naxon Opened a Retail Computer Shop That He Called Computer