Naxon opened a retail computer shop that he called Computer Haven Ltd. He used colours and signs similar to those used by Computerheaven Ltd., a very successful computer store three kilometres away. After Naxon was in business for about five months, the directors of Computerheaven Ltd. noticed that their sales had dropped. On these facts, which of the following is true?
◦ Computerheaven could successfully sue Naxon for the tort of injurious falsehood.
◦ Computerheaven has no cause of action against Naxon because ours is a free society and competition in all forms is encouraged by our political and legal system.
◦ Computerheaven could successfully sue Naxon for the tort of innuendo.
◦ Computerheaven could successfully sue Naxon for breach of contract.
◦ Computerheaven could successfully sue Naxon for the tort of passing-off if it can prove that the name, signs, and colours used by Naxon were likely to mislead the public.
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