Question
Kyle is looking to move Alabama Sunshine to a higher level.His canned and dried produce lines are growing but he wants to push his new
Kyle is looking to moveAlabama Sunshineto a higher level.His canned and dried produce lines are growing but he wants to push his new hot sauce, salsa, and condiment lines.He sees the organically grown produce operation as gaining a solid, well-rooted consumer base; however, Kyle wants to expand beyond seasonal produce.He needs a way to communicate an identity for his new products and, after considerable thought, settles on the nameKyle's Fantastic Condiments, a name that Kyle believes will stick to the plates and palates of his patrons.Kyle has successfully gotten the hot sauce, salsa, and condiment lines into the United Nutrition Associates (UNA) grocery stores in Florence, Madison, and Huntsville, AL, and has placed red and white billboards along I-20 in Tennessee and Alabama advertising his new products; his new market in Jasper, AL; and his new company website (KFC.com).The slogan of his new venture, which he uses in radio and TV ads, is "KFC, your assurance of fantastic farm fresh, family-focused, affordable food."Shortly thereafter, Kyle received a certified letter from a well-know, nation-wide chain restaurant, Kentucky Fried Chicken (KFC), alleging harm to its business interests, including infringement of and dilution of its trademark and trade name.
Undeterred and determined to put some spice into his profit margin and give customers a new taste, Kyle decided to kick off the upcoming Thanksgiving holiday season by introducing a special offer pack of his hot sauce, salsa, and condiments, calling it theKFC Variety Pack.The variety packs are now stocked in all of UNA's grocery stores and have proven to be so successful that the stores quickly sold out.Now UNA wants more of Kyle's product.UNA's chief financial officer (CFO), Candace B. Ritenoff, calls Kyle promising to buy all of theKFC Variety PacksthatAlabama Sunshinecan produce within the next 30 days and promises to mail a deposit of $15,000 immediately to seal the deal.Unfortunately, Kyle was out-of-town, having decided to celebrate the forthcoming holiday season early by touring the Mobile Bay area to relax and look for new business opportunities. The CFO left the offer on Kyle's office phone voice mail and Kyle did not get the message until a week later when he returned to Jasper.He immediately called Scooter, his production manager, telling him to crank up production of the value packs by running the plant 24 hours a day, seven days a week, and promising Scooter ahefty bonus"if UNA's needs are met".The sudden activity, promise of the bonus, and associated pressures causedScooter to relapse back to his old substance abuse habit, requiring that he be admitted to a residential detox facility in Savannah, TN,but not before he had gotten the revised production schedule operational at the plant.
Kyle is concerned about the letter from the national restaurant company, doesn't want to get in a protracted and costly legal battle, and comes to you, his faithful college friend, for counsel.Kyle mentions that, after telling his farm field production workers about restaurant company's cease and desist letter, some of them became angry, fearing for their jobs, and threw overripe carrotsand bell peppers at passing Kentucky Fried Chicken trucks, causing one of the drivers to run off the highway, striking several utility poles.Kyle is also concerned that, since he has contracts with Slogan-Advantage Advertising for the billboards and WLEO radio station for "on-air" commercials, he could wind up losing a lot of money.As a passing comment, Kyle mentions that he also has a contract with Intensified Tide Computer Services (ITCS) for the maintenance of theAlabama Sunshine/Kyle's Fantastic Condimentswebsite and asks your counsel about the offer from UNA's CFO and whether he may have to pay Scooter the bonus as promised.
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