What constitutesfalse advertising or theft of business opportunity?

Get Legal Help Today

 Secured with SHA-256 Encryption

What constitutesfalse advertising or theft of business opportunity?

I owned my own construction company for over 10years but was forced to close the business because of the economy. I have not completely terminated the company as I am still in the process of filing bankruptcy. Anyway, I did several multi-million dollar homes in which I am very proud of. One of my employees, whom I fired before the end of the company, has since opened up his own construction company. On his company website, he has posted pictures of several of the homes built by my company and he is claiming them to be done by his new company. I know this is not legal. So what exactly is he guilty of and do I have a case against him if I decide to sue? Also, would I have a case against one of the homeowners if they willingly and knowingly let him take pictures and post them to his site, even though they know very well the work was not his to be claimed?

Asked on July 24, 2011 New Jersey

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Most states have statutes setting forth what constitutes false advertising or theft of a business opportunity. You need to review statutes in your state to see what the specific elements are for false advertising or theft of a business opportunity.

From what you have stated in your question, if your former employee is posting information to the general public on his company website that he actually built homes that your company built through his new company, then he seems to be advertising falsely.

A false advertisement violation is essentially placing misleading or false information in one's advertising.

Theft of a business opportunity is something else. It occurs when someone uses improper conduct to interfere with an existing business relationship between two people where the relationship ends with the purpose that one of the people in the business relationship will now do businses with the person who used the improper conduct to end the prior business relationship.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption