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CLA1502 Assignment 2 Semester 1 2024 - DUE 23 April 2024
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[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.
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