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Lucille and Lindsay are the owners of the two most successful jewelry stores in Orange County, CA. The two are constantly competing for sales and customers. In addition to operating a successful jewelry store, Lucille also writes a popular, widely circulated newsletter about things happening around town and local celebrities.
For the last few months, Lindsay has been consistently matching or beating Lucille’s prices and attracting customers with in-store events like live music and cocktail hour. In an attempt to win back customers, Lucille writes in her newsletter that Lindsay has been selling fake diamonds and gemstones and passing them off as the real thing. Lindsay’s jewelry business plummets and she is forced to close her store. She comes to you for legal advice. She wants to know:
(1) Does Lindsay have any legal claims against Lucille? If so, detail and explain the possible claims. (2) If so, is Lindsay entitled to any compensation from Lucille? Why or why not? (3) What possible defenses could Lucille raise?
In your answer don’t forget to: identify the legal issues presented by the facts of the question, define any relevant terms, and answer the question by applying legal reasoning (including naming the specific law or legal principle that applies).
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