Question

In: Accounting

Tiffany & Co and giant wholesale retailer Costco. on the case and discuss it with your...

Tiffany & Co and giant wholesale retailer Costco. on the case and discuss it with your classmates. Do you believe that Costco was just making use of the generic "tiffany setting" term when they labelled their rings "Tiffany" or was that just a ploy to get customers to believe this was an actual Tiffany & Co. ring? Given that terms like "Kleenex" and "Xerox" were once company trademarks but have become so widely used that they are no longer considered trademark protected, isn't it at least possible that this is really what Costco intended? Or as the judge said do you think it was an "an intentionally deceptive marketing ploy." What could/should Costco have done differently to avoid this kind of a lawsuit?

Solutions

Expert Solution

solution

Costco was unquestionably not making utilization of the conventional "Tiffany setting" term while marking their rings "Tiffany". On the off chance that it was an unexpected use to show the kind of setting it ought to have unmistakably be named Tiffany setting. Costco obviously knew about the advantage that could be determined by using the brand name of Tiffany on exhibits showing rings and boxes. The organization was additionally mindful that it was disregarding the Trademarks assurance Act by encroaching upon a trademark. The organization did not make any move to make changes in the cases or exhibits even after various clients express the resentment or disappointment at having comprehended the rings to be Tiffany items. On the off chance that it was a miss guided accidental utilization of the nonexclusive Tiffany setting term Costco ought to have made healing move promptly after understanding that clients were being deluded and feeling tricked. The refusal to act is a reasonable sign that Costco and aim of profiting better evaluating and increment deals by abusing the trust individuals forced in the Tiffany brand to drive out of line advantage from utilizing a trademark encroachment of the trademark insurance Act.

Terms like Kleenex and Xerox which were once organization trademarks have turned out to be broadly utilized yet again the inquiry is regardless of whether the purchaser was misdirected and regardless of whether the provider or vender proposed to deceive and thirdly whether any undue advantage was gotten from utilization of such term which would some way or another not have been gotten. At the point when the terms kleenex and xerox are utilized the client itself and buyer I will never that it doesn't mean the item is from these brands as is likewise unmistakably referenced on the bundle. So it is only a tenable utilization of a specific term with no confusion being advanced on either side and no damage coming about to anybody.

Costco any organization which is working inside a business situation is plainly mindful of the statutory laws and directions which it is intended to pursue to keep away from lawful activity. Costco ought to have known about its utilization of a well known brand name unpredictably would delude clients. Regardless of clients communicating that they had been misleadingly prompted imagine that the ring was produced by Tiffany the organization made no move to make changes in the cases or grandstands with the Tiffany mark name as restorative activity.

Likewise obviously need to execute moral conduct and approach inside the whole association which was not polished at Costco as the sales reps were not prepared to not deceive clients to bring a deal to a close by advising them that the rings were from Tiffany. Indeed, even men the organization the board ended up mindful that salesmen enjoying such practices no endeavors were made to address them a keep them from utilizing unreasonable practices. Costco could have kept the claim by unmistakably demonstrating that the rings war of Tiffany setting just and not fabricated by Tiffany while likewise guaranteeing that the salesmen plainly educated each client about this critical data. Moral norms of the organization ought to have been unmistakably settled inside the archives with the initiative offering help by making strict move against any sales rep deceiving clients in regards to the rings being of Tiffany Brand.


Related Solutions

Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco...
Analysis and Interpretation of Profitability Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) September 2, 2018 Total revenue $141,576 Operating expenses Merchandise costs 123,152 Selling, general and administrative 13,876 Preopening expenses 68 Operating Income 4,480 Other income (expense) Interest expense 159 Interest income and other, net (121) Income before income taxes 4,442 Provision for income taxes 1,263 Net income including noncontrolling interests 3,179 Net income...
Costco is an American wholesale corporation which has expanded its business internationally. a) Costco currently needs...
Costco is an American wholesale corporation which has expanded its business internationally. a) Costco currently needs to buy Australian dollars to be used to open another store in Melbourne. The quote advertised by a local foreign exchange dealer in New York is AUD 1= USD 0.6690-0.6700 1) What is the commodity currency in the advertised quote? Is it a direct quotation or an indirect quotation? [1 mark] ii) What is the rate at which Costco can exchange US dollars into...
The founder of warehouse retailer Costco, James Sinegal, once said, ”Paying your employees well is not...
The founder of warehouse retailer Costco, James Sinegal, once said, ”Paying your employees well is not only the right thing to do but it makes for good business.” Costco has offered employees above industrial-average salaries and health benefits. On the other hand, Wal-Mart, the largest retailer in the world, pays its cashiers slightly above minimum wages and declines to offer health insurance to every employee. Can both Costco and Wal-Mart be maximizing shareholder value?
Each response should be about one paragraph long, describing the justification for your decision. Costco Wholesale...
Each response should be about one paragraph long, describing the justification for your decision. Costco Wholesale sells a yearly Executive Membership on April 1st, and receives $120 in cash from the customer. The contract states that the membership is not refundable, unless the member relocates to an area in which there is not a Costco within 20 miles. Are the revenue recognition criteria met or not met? Why or why not?
Both Costco and B.J.'s are called wholesale clubs as a type of business. But are they?...
Both Costco and B.J.'s are called wholesale clubs as a type of business. But are they? Are they really retailers or wholesalers? Explain your answer by using an item they sell to both retailers and wholesalers.
Case Study: Furniture Fire [from McClave, Benson, and Sincich 1998] "A wholesale furniture retailer stores in-stock...
Case Study: Furniture Fire [from McClave, Benson, and Sincich 1998] "A wholesale furniture retailer stores in-stock items at a large warehouse located in Tampa, Florida. In early 1992, a fire destroyed the warehouse and all the furniture in it. After determining the fire was an accident, the retailer sought to recover costs by submitting a claim to its insurance company." "As is typical in a fire insurance policy of this type, the furniture retailer must provide the insurance company with...
Tiffany & Company is a luxury jeweler and specialty retailer that sells timepieces, sterling, china, crystal,...
Tiffany & Company is a luxury jeweler and specialty retailer that sells timepieces, sterling, china, crystal, fragrances, and accessories through its retail stores worldwide. Signet Jewelers Ltd. operates a number of well-known retail stores (Belden Jewelers and Kay among them) that sell moderately priced jewelry and other items. Selected financial on about each company for the year ended January 31, 2015, follows: Tiffany Signet Sales $4,249.3 $5,736.3 Net Income $484.2 $381.3 Return on Assets 10.5% 7.8% Profit Margin 12.3% 7.0%...
Analysis and Interpretation of Liquidity and Solvency Balance sheets and income statements for Costco Wholesale Corporation...
Analysis and Interpretation of Liquidity and Solvency Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) August 28, 2016 August 30, 2015 August 31, 2014 Revenue Net Sales $116,073 $113,666 $110,212 Membership fees 2,646 2,533 2,428 Total revenue 118,719 116,199 112,640 Operating expenses Merchandise costs 102,901 101,065 98,458 Selling, general and administrative 12,068 11,445 10,899 Preopening expenses 78 65 63 Operating Income 3,672 3,624 3,220 Other...
CASE BRIEF 7.2 Tiffany and Company v. Andrew 2012 WL 5451259 (S.D.N.Y.) FACTS: Tiffany (plaintiffs) allege...
CASE BRIEF 7.2 Tiffany and Company v. Andrew 2012 WL 5451259 (S.D.N.Y.) FACTS: Tiffany (plaintiffs) allege that Andrew and others (defendants) sold counterfeit Tiffany products through several websites hosted in the United States. Andrew accepted payment in U.S. dollars, used PayPal, Inc. to process customers' credit card transactions, then transferred the sales proceeds to accounts held by the Bank of China (“BOC”), Industrial and Commercial Bank of China (“ICBC”), and China Merchants Bank (“CMB”) (“Banks”). Andrew defaulted on the suit,...
Costco Wholesale Corporation operates more than 600 warehouse stores in the United States and abroad. The...
Costco Wholesale Corporation operates more than 600 warehouse stores in the United States and abroad. The following items were in a slightly simplified version of the company’s statement of cash flows for the fiscal year ending August 28,2011 (in millions): Increase in merchandise inventories $ 642 Net income 1,542 Depreciation and amortization 855 Other noncash expenses 269 Increase in payables 804 Increase in other operating liabilities, net    451 Increase in receivables 81 The company’s income statement showed (in millions):...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT