Scribd
Upload
105 views

CLA1502 Assignment 2 Semester 1 2024

Uploaded by

jametrabuckles102
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
105 views

CLA1502 Assignment 2 Semester 1 2024

Uploaded by

jametrabuckles102
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

[Date]

CLA1502 Assignment
2 Semester 1 2024 -
DUE 23 April 2024
QUESTIONS AND ANSWERS

[COMPANY NAME]
CLA1502 Assignment 2 Semester 1 2024 - DUE 23 April
2024

QUESTION 1
Lerato has a luggage shop in the Downtown district. She is known for selling well-
known name brands to the public at reasonable prices. Amo, a keen Gucci collector,
decides to buy a handbag from Lerato. Lerato guarantees the originality of all her
products. Upon inspection, Amo detects that the handbag is not original Gucci.
Answer the following questions:
1.1 Explain the requirement of wrongfulness in unlawful competition. (4)
1.2 Identify the form of unlawful competition in the above scenario. (6)
1.3 Explain whether there will be grounds for justification available to Lisa for the
infringement of Gucci’s goodwill. (2) [12]
Answer
1.1 Wrongfulness in Unlawful Competition (4 marks)
Wrongfulness is a key element in unlawful competition. It means that the competitor's
conduct must be considered unfair, improper, or unlawful according to the general
principles of the law. Here are some factors courts consider when determining
wrongfulness:
• Legality: Does the conduct violate any existing laws or regulations?
• Good faith: Did the competitor act honestly and ethically?
• Fairness: Does the conduct give the competitor an unfair advantage over
honest competitors?
• Harm: Does the conduct cause harm to the competitor's business or reputation?
In Lerato's case, selling a fake Gucci bag would likely be considered wrongful
because:
• It deceives the customer (Amo) about the product's authenticity.

For exam pack with questions and answers, quality notes, assignments and exam
help:
email: [email protected]
WhatsApp: +254792947610
• It undermines fair competition by benefiting from Gucci's reputation without
authorization.
1.2 Form of Unlawful Competition (6 marks)
There are several forms of unlawful competition, but in this scenario, the most likely
form is:
• Passing Off: This occurs when a competitor misrepresents their product as
being from another well-known brand. By selling a fake Gucci bag and
guaranteeing its originality, Lerato is likely attempting to pass off the bag as
genuine Gucci.
1.3 Justification for Lerato (2 marks)
There is unlikely to be any justification available for Lerato. Here's why:
• Ignorance: Even if Lerato claims she was unaware the bag was fake, courts
generally expect reasonable due diligence from businesses selling branded
products.
• Guarantee of Originality: By guaranteeing the originality, Lerato strengthens
the argument that she intended to deceive the customer.
Lerato's actions likely harmed both Amo (who bought a fake) and Gucci (whose brand
reputation suffers from counterfeiting).

QUESTION 2
Nicky enters into a contract of insurance with One Way Insurance. In terms of the
contract, Nicky insures her vehicle for R900 per month. Four months later Nicky is
involved in a car accident and want to claim from One Way. Identify and discuss the
factors
Factors Nicky Needs to Consider When Claiming From One Way Insurance:
When Nicky makes a claim on her insurance with One Way Insurance, there are
several factors she should be aware of that might affect the outcome:
1. Policy Coverage:

For exam pack with questions and answers, quality notes, assignments and exam
help:
email: [email protected]
WhatsApp: +254792947610
• Type of Cover: Nicky needs to understand what type of insurance coverage
she has under her contract. There are different types, such as comprehensive,
collision, or liability. Each covers different situations. For example, if her
policy only covers collision damage and the accident involved another driver
who was at fault, she might not be covered for repairs to her own car.
2. Accident Details:
• Fault: Determining who is at fault for the accident is crucial. One Way
Insurance will likely investigate the accident details and assign fault. If Nicky
is found to be at fault, the claim process might be different compared to a
scenario where the other driver is responsible.
3. Claim Conditions:
• Deductible: Nicky's policy likely has a deductible, which is an amount she has
to pay upfront before the insurance company covers any remaining repair costs.
She should know the deductible amount to understand her out-of-pocket
expense.
• Policy Exclusions: The policy might exclude coverage for certain situations,
like driving under the influence or participating in illegal activities. Nicky
should review the exclusions to ensure the accident falls within the covered
scenarios.
4. Documentation:
• Police Report: Having a police report filed for the accident is crucial for most
insurance claims. It provides a documented record of the event, parties
involved, and witness statements.
• Vehicle Damage: Photos and detailed descriptions of the vehicle damage will
be needed by One Way Insurance to assess the repair costs.
• Repair Estimates: Nicky might need to obtain estimates from qualified repair
shops to show the insurance company the expected repair costs.
5. Communication:

For exam pack with questions and answers, quality notes, assignments and exam
help:
email: [email protected]
WhatsApp: +254792947610
• Timely Claim: Nicky should notify One Way Insurance about the accident as
soon as possible, following the timeframe outlined in the policy. Delays in
reporting might affect the claim process.
• Honesty: Nicky needs to be honest and transparent with One Way Insurance
about the details of the accident. Any misrepresentation could lead to claim
denial.
By considering these factors and gathering the necessary documentation, Nicky can
increase her chances of a smooth and successful claim process with One Way
Insurance.
DISCLAIMER: THE ABOVE ASSIGNMENT MIGHT BE DOWNLOADED BY
MULTIPLE STUDENTS, NOT ADVISABLE TO SUBMIT DIRECT!!
For exam pack with questions and answers, quality notes, assignments and exam
help:
email: [email protected]
WhatsApp: +254792947610

For exam pack with questions and answers, quality notes, assignments and exam
help:
email: [email protected]
WhatsApp: +254792947610

You might also like