Law and Business Administration in Canada

Edition 14th

Author: Smith, Soberman, Easson, Mcgill

We need a clear explanation of legal principles that apply to these questions.

McCoy's Restaurants Ltd. is a large firm that operates a chain of 60 restaurants across Canada under the name of "McCoy's" and is well known nationally due to its extensive advertising campaigns.

Angus McCoy recently bought a restaurant, previously known as "Sam's Diner" situated at a busy truck stop near Timmins, Ontario. He formed a company under the name of Angus McCoy Ltd. and renamed the restaurant "The Real McCoy's". The dcor and furnishings of Angus's restaurant are not at all like those of the McCoy chain, but the external appearance bears some similarity.

The president of McCoy's Restaurants Ltd. is angry because she has been planning to open a franchise store in Timmins. She alleges that Angus is attempting to deceive the public, is trading on her company's reputation, and is benefitting from its advertising. She has written to Angus, insisting that he change the name of his company and his restaurant; otherwise McCoy's Restaurants will commence legal proceedings.

Angus maintains that no one is confused, that he chose the name "The Real McCoy's" deliberately to distinguish his restaurant from those of the chain, and that, since the principal owners of McCoy's Restaurants Ltd. is called Angelotti and Zbigniewsky, they are the ones who are trading improperly under his name.

Required: Advise Angus what legal actions might be taken against him and whether or not they might succeed