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Answer on Microeconomics Question for lasisi

Question #36517
what actions are unfair competition?

a. technical espionage
b. improving the quality of competing
c. Brain drain
d. Unauthorized use of trademark
Expert's answer
Unfair competition in a sense means that the competitors compete on unequal terms, because favorable or disadvantageous conditions are applied to some competitors but not to others; or that the actions of some competitors actively harm the position of others with respect to their ability to compete on equal and fair terms.

The most common actions falling under the banner of unfair competition include:

- Matters pertaining to antitrust law, known in the European Union as competition law.

- Trademark infringement and passing off, which occur when the maker of a product uses a name, logo, or other identifying characteristics to deceive consumers into thinking that they are buying the product of a competitor.

- Misappropriation of trade secrets, which occurs when one competitor uses espionage, bribery, or outright theft to obtain economically advantageous information in the possession of another.

- Trade libel, the spreading of false information about the quality or characteristics of a competitor's products, is prohibited at common law.

- Tortious interference, which occurs when one competitor convinces a party having a relationship with another competitor to breach a contract with, or duty to, the other competitor is also prohibited at common law.

So, the right answers are a and d.

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