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Question 1
Jen and Berry's is a nationally recognized ice cream manufacturer. Their main competition is Eddie's, a regionally recognized brand that is becoming more popular. In order to keep their place at the top of the ice cream market, Jen and Berry's launches a marketing campaign claiming that they use only organic ingredients in their ice cream and that their ice cream is fresher, creamier and better tasting than Eddie's ice cream. In fact, Jen and Berry's does not use organic ingredients in its ice cream. As a result of the campaign, Eddie's sales fall off and he eventually goes out of business. In an action against Jen and Berry's for misrepresentation, Eddie's will:
Correct
Incorrect!
Correct Trade libel is a subset of misrepresentation where defendant makes false statements as to the quality of plaintiff's goods so that customers will be discouraged from buying them. However, one particular conditional privilege that exists only in the area of injurious falsehood which will insulate a defendant from liability is the privilege that business competitors have in advertising their products. Where plaintiff and defendant are business competitors, defendant is allowed to puff his product, i.e., make general statements about, his own products, even if those statements are false. However, defendant is not allowed to make disparaging statements about plaintiff's products. B is correct because Jen and Berry's made no disparaging remarks about Eddie's ice cream. Had Jen and Berry's said that Eddie's ice cream was inferior to theirs, Eddie would have a viable cause of action. A is false because one is allowed to make false statements about his own products.
Incorrect! Trade libel is a subset of misrepresentation where defendant makes false statements as to the quality of plaintiff's goods so that customers will be discouraged from buying them. However, one particular conditional privilege that exists only in the area of injurious falsehood which will insulate a defendant from liability is the privilege that business competitors have in advertising their products. Where plaintiff and defendant are business competitors, defendant is allowed to puff his product, i.e., make general statements about, his own products, even if those statements are false. However, defendant is not allowed to make disparaging statements about plaintiff's products. B is correct because Jen and Berry's made no disparaging remarks about Eddie's ice cream. Had Jen and Berry's said that Eddie's ice cream was inferior to theirs, Eddie would have a viable cause of action. A is false because one is allowed to make false statements about his own products.
Correct
Incorrect!
Correct
Incorrect!
Question 2
Sunshine Groves is a grower and wholesaler of oranges. The Squeeze Me Orange Juice Company wants to buy its oranges from Sunshine but CitruFarms, a competitor of Sunshine tells Squeeze Me that Sunshine's oranges are sour and not fit for juice. In fact, Sunshine grows a special breed of bitter orange that is not good for regular orange juice. In an action against CitruFarms for injurious falsehood, Sunshine will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct Injurious falsehood is essentially interfering with the sale of plaintiff's property by virtue of the disparagement of either plaintiff or his property. In order to prove a prima facie case of injurious falsehood, plaintiff must prove that defendant intentionally made false statements disparaging plaintiff's property or business interests, that the statements were published to third persons, that defendant's statements were the cause of the harm suffered by plaintiff and that plaintiff suffered special damages. However, if defendant's statements are true, plaintiff cannot recover. Here, CitruFarm's statements about Sunshine's oranges were true. Therefore, C is the correct answer. D is incorrect because Sunshine does not yet have a contract with Squeeze Me.
Incorrect! Injurious falsehood is essentially interfering with the sale of plaintiff's property by virtue of the disparagement of either plaintiff or his property. In order to prove a prima facie case of injurious falsehood, plaintiff must prove that defendant intentionally made false statements disparaging plaintiff's property or business interests, that the statements were published to third persons, that defendant's statements were the cause of the harm suffered by plaintiff and that plaintiff suffered special damages. However, if defendant's statements are true, plaintiff cannot recover. Here, CitruFarm's statements about Sunshine's oranges were true. Therefore, C is the correct answer. D is incorrect because Sunshine does not yet have a contract with Squeeze Me.