Question

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).

Answer 1

As Lucille is spreading fake news about Lindsay's business and providing false information regarding her usage of selling diamonds, this is specific type of false claims have drastically affected the overall business of Lindsay and lead to closing of the store.

According to the first A lawsuit can be filed in the case of defamation. According to the law in California business can file a lawsuit against Lucille . Lindsay can file a case against Libel defamation
In this is specific case by looking into the factors we can see that Lindsay has an availability of filing case of defamation against Lucille. As Lucille is printing false claim of Lindsay selling fake diamonds on her newsletter, lindsay has availability of prove that makes correct evidence in the court for winning the specific lawsuit.

In this condition Lindsay is eligible for compensation from Lucille as her f fake publishing of fact directly affected the overall business of Lindsay and lead to the closing of the store. Volume of the compensation can be determined by the total loss that Lindsay's business faced after being affected by search specific fake information spread by Lucille.

Using cocktails and music for decreasing the concentration of the customer to replace original with false diamonds can be used by Lucille . As Lindsay already has very strong availability of proof in written form where Lucille has specifically made false claims about Lindsay.