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). [...]
[...] Conclusion Social impact Existence of the unfair competition law in businesses plays a key role in promoting legal and fair businesses. Section 17200 of the business and ethics code of California has acted as a powerful weapon for businesses in the wake of illegal businesses. If the law did not exist, neither business persons nor consumers would be protected from harmful practices. In spite of its powerful role, the law has failed to provide satisfactory damages. The only remedies available to the plaintiff under the provisions of this law are an injunction to stop the business practice and restitution (Stern, 1992). [...]
[...] Redefining commonality for the consumer class steps under California Business and Professionals Code sections 17200 and 17500. Journal of Business Law, 353-391. Stern, W. (1992, July 29). With some help from 17200, the empire can strike back. Daily Journal Corporation, 12(3). [...]
[...] Therefore, businesses and consumers need to be protected against illegal business practices that would negatively affect the economy. Establishing the Unfair Competition Law is the only remedy that could best protect the interest of all parties in a trade agreement. However, I think the Unfair Competition Law should be expanded to provide for more remedies in damages suffered. This way, the party whose legal rights are infringed is fully compensated (Mehrfar, 2010). For a healthy economy the government, through the courts should protect competition since it is the gearing force. References Johnson, C. [...]
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