Analyze the case study listed below and write a three (3) page essay in response to the points listed below:
Thomas Rinks and Joseph Shields developed Psycho Chihuahua, a caricature of a Chihuahua dog with a “do not back down” attitude. They promoted and marketed the character through their company, “Wrench, LLC.” Ed Alfaro and Rudy Pollak, representatives of Taco Bell Corp., learned of Psycho Chihuahua and met with Rinks and Shields to talk about using the character as Taco Bell’s icon. Wrench sent artwork, merchandises and marketing ideas to Alfaro, who promoted the character within Taco Bell. Alfaro asked Wrench to propose terms for Taco Bell’s use of Psycho Chihuahua.
Taco Bell did not accept Wrench’s terms, but Alfaro continued to promote the character within the company. Meanwhile, Taco Bell hired a new advertising agency, which proposed an advertising campaign involving a Chihuahua. When Alfaro learned of this proposal, he sent the Psycho Chihuahua materials to the agency. Taco Bell made a Chihuahua the focus of its marketing but paid nothing to Wrench. Wrench filed a suit against Taco Bell in a federal court claiming that it had an implied contract with Taco Bell and that Taco Bell breached that contract.
- Can you see any possible intellectual property issues with this scenario? Please explain. How would you handle any such issues?
- What are the four required elements for the formation of a contract? Are they met in this instance? Explain why in detail.
- In the alternative, can you make a case in which this fact pattern could satisfy the requirements for an implied-in-fact or quasi contract? Explain in detail why or why not.
- Is whichever type of contract you find to exist in this instance bilateral or unilateral? Explain your reasoning.
- You be the judge…..present a detailed what you believe the most likely outcome of a cause of action brought in this scenario would be.