Business Law Newsletter

• Liability of Franchisors Arising Out of Agency Relationships
  An increasing array of goods and services are offered through “franchises.” Franchising is not a new concept, but it has exploded in popularity; according to statistics compiled by Price Waterhouse Coopers in 2005 (the... Read more.
• Rights to Intellectual Property Created in the Workplace
  Generally, “intellectual property” is any intangible property, such as knowledge of a process, a musical composition or a trademark associated with a product. There are typically four specific areas of intellectual property:... Read more.
• NCCI Components of Remuneration in Calculating Workers' Compensation Premiums
  Workers’ compensation law governs rights and procedures for compensating employees for work-related injuries and occupational diseases. While workers’ compensation law is based largely on state statutes (and thus varies by... Read more.
• OSHA's Asbestos Standard for the Construction Industry
  Asbestos is a fibrous material with high tensile strength and flexibility, widely used for its resistance to heat, chemicals and electricity. In the construction industry, asbestos is typically found in installed products such as pipe... Read more.

• Amazon defeats eBay lawsuit over seller poaching
• Jack in the Box settles its dispute with franchisees
• Luhnow files $22M breach of contract lawsuit against Astros
• Judge sets first hearing in U.S. Google antitrust lawsuit
• McDonald’s seeks dismissal of racial discrimination lawsuit by former franchisees

Intangible Assets of a Business

The “good will” of a business is an intangible asset, like the reputation, skill, or experience that is associated with the business. It also refers to the rate of recurring patronage that a business has developed over time with the general public.

Ownership

The good will of a business belongs to the business owner. It might be owned by either an individual or a corporation, but not by stockholders. The representative of a business is not personally connected to the business’ good will.

The ownership of good will may be transferred when the business is sold, but it cannot be sold apart from a business’ physical property. Good will ownership may also be transferred even when it is only implied and not specified in a contract. For example, the good will of a business trade name or trademark would be automatically transferred upon the sale.

Unfair Competition

The former owner of a business may conduct a similar business and even draw in former patrons. But it is not fair play if the former owner purposely confuses the public into thinking that a new business is the former business. This is unfair competition, and the new owner may be able to take action.

Remedies

An injunction may be imposed upon the former owner, disallowing any further activity that would cause public confusion and loss of profits to the new owner. If fraudulent activity has occurred, monetary damages may be awarded.

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