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Duty of Care

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Rally Round the Trade Name

Professor Michael S. Green
Law, Ethics and Corporate Governance
14 December 2011
1. Explain whether or not the fact that Gabby's surname is Rally gives her the right to use it any way she wishes.
Since Gabby's surname is Rally it does not give her the right to use the name Rally as the lead name of her business. The Lanham Trademark Act which has a subsidiary division called the Federal Trademark Dilution Act of 1995, which protects company’s ownership rights to names, logos or symbols that depict the name of that business. In this case the name "Rally" has been identified as a prominent car dealership, we then have a brand new company in which its business is in food services. The intertwining of the same names is making it very difficult for anyone to distinguish between pizza pallor and a car dealership. The company "Rally Motors" has the legal right to prevent any other company from infringing on the use of the name "Rally". As Herman made very clear in the video presentation, "If I let you name your business "Rally", then I'll have a used car salesman calling his business "Rally", and he'll open p right across the street" (Rally Round the Trade Name skit). If Herman where to allow this to possibility continue , sooner or later, there would be other companies that would develop wit the same type of business plan and possibly overrun Herman’s car dealership. The usage of the name "Rally” for Gabby's pizzeria is a prime example of the Trademark Infringement, which considered is a violation of the exclusive rights to a trademark without the authorization of the owner or any licensees (Common Wealth Consolidated Act). The infringement takes place when Gabby uses the name "Rally" as her pizzeria name, with prior knowledge of the car dealership existence for over forty years. The trademark act specifically points out that where the respective marks, products, or services are not identical, the similarities would need to be assessed to uncover the likelihood of confusion.

2. Explain whether or not it matters that Rally is associated with pizza.
I believe that in this scenario the answer for this question is "NO". The total outcome for Rally Motor's and Rally Pizzeria must be taken into consideration, because this scenario is mixing apples with oranges. It is known that they have the same first name for there businesses, but there should not be anyway possible to confuse a car dealership with that of a restaurant. Rally Automotive was noted to have been around for forty years and counting, whereas Rally Pizzeria has just emerged for nowhere. The original use of the name "Rally" should have been trademarked, if it had been, the use of the name "Rally" for a pizzeria would not be possible. When a company plans to emerge they must take many steps to become incorporated, one of the steps is insuring that the name the business would be called is not being already used. While researching the names of other companies with the possible similar name, the prevention of developing an identical business already in existence is minimized. All business/companies must be registered per state laws. (This statement is being made, because I have actually gone through the process of incorporating a business.) As in this scenario, it really do not matter, neither company is within the same business bracket. On one hand we have an automotive company and on the other food & beverage business, to distinguish them both companies should and could develop adverting slogans to better separate them. An example, Rally Pizza's could advertise anything not dealing with the automotive industry, such as depicting an individual racing somewhere to get on of their pizzas.

3. Explain how important the fact is that Herman started to use the name Rally first in that particular area.
The fact that Herman started to use the name "Rally" in that area has no bearing whatsoever. Neither of the business is in the exact same industry, so there really should not be any kind of confusion. Within the explanation of a trademark, there have been notes of our legal system allowing business to carry the same name as long as neither business embarks within the same product market. Allowing business to partake in this area minimizes many possibly disputes. It is pretty difficult to provide evidence that with both industries running one of them is able to overrun the other in the same market.

4. Explain what rights you have in your trade name.
Trade names are really used to identify certain services and products. Within corporate America all business having claims of such must commercially register within their respective states. The use of a trademark helps distinguish the business and the service that they provide. The Lanham Trademark Act of 1946 provides all business with a form of protect from possible invasion of trade rights, such as possible trading deception due to unlawful practices. With this act in place the need for distinction of business is pertinent, to in compass the need for competitor rivalry without a monopoly. Slandering of a corporations name within the law and by-laws is strictly prohibited and could be punishable under the laws emplaced.

5. Explain what remedies you have if someone else infringes upon your trade name.
Our legal system has so many intricate ways of punishing individuals that partake in infringement. Any revenue generated from the use of another company associated with the exact same name of another is subject to review by the courts. If any possible obscurities transpired, misrepresentation of the companies name or image, then damages that where incurred by the trademark owner can be awarded. With the scope of trademark dilution, any trades of goodwill, but result in bad faith are subject to damages being awarded as well. Majority of suit that may go this way result in injunctions of the infringement and the using company in found negligent.

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