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Unfair competition Law- Business and Professions Code 17200 et seq

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Accountant-Lecturer
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General public
Study
finance
School/University
California

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documents in English
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case study
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3 pages
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  1. Introduction
  2. Legislation
  3. Case analysis
  4. Personal opinion
  5. Conclusion

The business and professional code is among the 29 codes that govern the state of California. The business and professional code provides insight to both business persons and consumers about business practices permitted by the law. Section 17200 of the code, known as the Unfair Competition Law, provides intuition for what constitutes an unfair business practice. This statute mainly protects competitors and consumers from unlawful, unfair and fraudulent business activities by endorsing rational competition in markets for goods and services (Julia B. Strickland, Lisa M. Simonetti, & AndrewW. Moritz, 2004). With an understanding of the prerequisites of this law including its definition and legal remedies provided by the statute, business persons promote fair business in the interest of consumers and competitors. By analyzing cases under the statute, I will gain an apprehension on the application of the law.

Under section 17200 of the business and professional code, unfair competition is defined as ?All unlawful, unfair or fraudulent business acts or practice and unfair, deceptive, untrue or misleading advertising and any act prohibited by Chapter 1 (commencing with Section 17500) of Part 3 of Division 7 of the Business and Professions Code? (Julia B. Strickland, Lisa M. Simonetti, & AndrewW. Moritz, 2004). Unfair competition, therefore, encompasses five key wrongs which include unfair, unlawful, fraudulent, deceptive, and any other act prohibited by section 17500, of illegal advertising (Wheaton, 2001). The five wrongs contained under this section are disjunctive meaning they operate independent of each other. A legal suit filed in court regarding unfair competition only needs to prove that the practice meets one of the three prongs, unlawful, unfair, or fraudulent.

[...] Congress adopted the definition in defining the provisions fraudulent practices of section 17200. A case of this involving any of these three prongs should be brought to court before four year's lapse. The Unfair Competition law allows any natural person, partnership, corporation of joint stock Company to file a legal suit for loss suffered. UCL allows the courts with jurisdiction in California to prevent uncompetitive competition by placing an injunction and restoring money as restitution to the victims of unfair competition. [...]


[...] L. (2009). The state of California anti-trust and unfair competition law in the State Bar of California unfair competition and antitrust law section. New Providence: LexisNexis Matthew Bender. Juliah B. Strickerland, Lisa M. Simolinetti, $ Andreah W. Monaritz. (2004, February). An Overview of California's Unfair Competition Law. Retrieved from https://www.stroock.com/SiteFiles/Pub168.pdf Mehrfar, R. (20101). [...]


[...] The court can also order the closure of the business to nullify a contract entered into upon violation of the provisions of Section 17200 (Johnson, 2009). The congress and the United States have failed to set forth with specificity the types of conduct prohibited under unfair competition. The main concern about it is that there are many practices that constitute unfair competition and since the section is defined under the provisos and modifications of common law, it does not full cover unfair practices contemporaneous in today's economy. [...]

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