I.    UNFAIR    COMPETITION

    A. General and introduction

          1. History - Tarleton v. M’Gawley, Peake, 270, 170 Eng. Rep. 153 (1794)

2. Passing off

3. Promotes business integrity

4. Test = consumer confusion

5. Focus = competition

1. HYPO:

 S coffee bar on Franklin
 M coffees on opposite corner

        2. Drives out competition

  a. Okay if better, cheaper

  b. Not okay, if bad motive or interference with clients

        4. Using “assets” to attract business

    C. Misappropriation

        1. HYPO:

  X = equipment manufacturer
  Y obtains copy of X’s customer list
  Y uses it to influence X’s customer’s to buy from Y

        2. INS v. AP, p. 9

     a. Property interest

     b. Valuable business data

     c. Reprehensible taking

     d. Reaping where you have not sown

     e. Economic harm to P

            a. Property right must exist

  b. Unauthorized  interference with business

   c. Interference  harm’s P‘s business

1. Sears/Compco, p. 25

2. Bonito Boats, p. 32

3. Vessel Hull Designs, 17 U.S.C. § 1301

4.    NBA, p. 408

1. Common law deceit / false advertising at common law

    HYPO:

   A = solid walnut  desks
   B = solid walnut desks
  “Made by A”

 2. HYPO Cont’d   “Made by NC’s oldest & finest”

    a. Passing off defined:  Harrington Mfg. Co. v. Powell Mfg. Co., 248 S.E. 2d 739 (N.C. App. 1978)

    b.   Desk = veneer

§66-76 & 77 = closing out sales
§75-29 = sale of  merchandise
§58-544 = insurance contracts
§95=47.6 = personnel agencies
§75-1.1 ......

a. Articles defining false advertising in NC

     1. Aycock, 50 N.C.L. Rev. 199 (1972)
     2.  Byrd, 70 N.C.L.  Rev. 323 (1992)

    A = veneer
    B = veneer

    a. Damages - more than speculative

    b. Lost customers, etc.

5. HYPO Cont’d

    B = solid veneer?
    B’s drawer pulls = solid walnut?
    B’s drawers = solid pine?

C = advertises NC walnut desks
C = from Tennessee

        7. Disparagement

            HYPO:

 A = sells used cars
 B = sells used cars
 B says A = dishonest

           B says A is a well-known tax evader

           a. Dealing with the bargain = best

           b. P‘s burden of proof

                1.  Statement made

                2. To gain competitive edge

                3. Capable of injuring P

                4. Falsity of statement

            c. Categories of disparaging speech

                1. Statements re  P‘s fraud

                2. Quality of P‘s goods

                3. Superiority of D‘s goods

            d. Libel per se

                1. No requirement of special damages

                2. False words that:

a. Accuse P of fraud,

b. Attack P‘s character personally, or

c. Question solvency of P‘s business