Taco Bell v Wrench LLC

Seminal Facts of The Case

In this case Wrench LLc, which is the petitioner, held discussions with the respondent that is Taco Bell corporation in relation to the use of Chihuahua which was a cartoon character. The character appeared on different items and clothing. During an open trade fair, the artists made their idea known to the agent representing the company of the respondent. This transpired that all the while another business was also making a presentation of the same concept to another agent of the company’s respondent. During this period, the disputant acquired the services of an advertising company that also used the same concept of the Chihuahua. The respondent didn’t hesitate to make use of the Chihuahua that was made by the marketing agency and therefore the insulted party filed a law suit that included unjust competition, misappropriation, change and contact breaching. While the respondent therefore pursued for hastened judgment.

Laws Violated

Laws violated in this case include breaching of the contract in which the respondent and the petitioner had agreed upon. This majorly relies on the principle of implied-in-fact that declares that an existing pact duly depends on the organization of the groups that make a pact; in the case that the petitioner acknowledges fees for services rendered by the respondents and the services do not offer the required amount for rendered services. The respondent also had the option of denying the services but yet still chose to carry on (Miller, 2014).

The conversion tort on intellectual property was also infringed on since the respondent since the respondent used the petitioner’s property without them being aware and that was because there was no agreement that was settled on (Miller, 2014). Misappropriation also took place since the respondent made use of the petitioner’s property without consent and unjust rivalry because the petitioner’s concept was offered to another marketing agency that did not originally have the concept.

Possible Penalties Associated with The Law

Considering the case on conversion, it is a deliberate tort that prompts a planned tort. The respondent will now have to remunerate the offended party i.e. the petitioner for the loss of significant worth for utilizing the property without the consent of the petitioner and therefore give up all the proceeds earned for making use of the property. The implied-in-fact law on contracts clearly depicts that an individual or a company can only utilize the other party’s property if a pact is clearly agreed upon between the two

. An implied in fact contract normally comes up when one party duly assents to benefitting from another party with anticipation for remuneration. Therefore, if there is proof that the parties agreed upon remuneration for services offered then fair payment is inferred according to the value regardless of whether there was an agreement based on price, time or other contract terms. In this case, implied-in-fact is applied and the respondents will have to duly compensate for contact breaching and making use of the concept without the petitioner’s understanding.

In misappropriation, the respondent will also be compelled to pay the damages in regard to using the property without consent. The respondent undoubtedly exploited the situation should remunerate the petitioner for the loss of significant worth and value. Through unjust competition, the respondent illegally profited from the use of the petitioner’s concept and duped the public into believing that they invented the whole idea. The court will issue an order to have the defendant pay the petitioner for creating unjust rivalry and loss of value too.



Court System

Hearing of the trial conducted in a District Court found in the federal court organization. Decision making of the court was dependent on the directive that will be communicated up regarding legitimacy of the hearing. The ruling that a law court will make heavily relies upon the submissions made by the two parties; respondent and the offended party need to present evidence and indicate how they endured harm dependent on the way their concept was stolen and by the respondents who utilized it as their concept (Bardes, 2015). The respondents then again needed to demonstrate the verification of proprietorship or the pact they entered with the offended party to utilize their creation.

On the other hand, the petitioner also needs to show verification that concept in question was their own invention and provide evidence on how the respondent’s acts have steered them to the damages they incurred. In addition to this, it must be demonstrated depending on the different laws that exist in the statute and direct enterprises that organizations are practising with the intention of merging to accomplish a collective goal. The petitioner had to likewise substantiate the claims by the respondent that they gave them the concept.

Considering the magnitude of the damages incurred by the petitioner, the court has to put into consideration the level to which the balance of hardship between both respondents and the petitioner therefore the court needs to guarantee the two aggrieved parties a just hearing by the presiding judge displaying impartiality during the whole process of submitting their case. This should also be displayed to the public and therefore a reasonable ruling that meets the open intrigue is presented by the court. Before the final ruling is made, a test comprising of parts in coming up with a ruling is conducted. This will greatly influence the manner in which the court will deliver the final judgment. Depending on the total verdicts that a court of law might have on intellectual property, an introductory order before making the final ruling is issued. Equal deliberation of submissions made on intellectual property will have an influence on the judge’s final ruling so that both the respondent and petitioner have an understanding of the criteria in which resolutions are agreed upon.

The Decision Ruled Upon

The decision made was reasonable depending on how the submissions from the two sides were deliberated upon. Both the offended party and respondents were offered ample interval to make their arguments known to the court of law that were majorly founded on the convention of implied-in-fact that apparently states the way agreements and concessions to organizations should be undertaken. Additionally, dependent on the change tort, the respondent clearly against the contractual obligations and exploited the circumstances in order to utilize the said invention to become the sole beneficiaries and making profits out of it (LTPG, 2015).

Moreover, no evidence indicating that the Petitioner did not give the Respondent the go ahead to make use of their invention in advertising their products. This became a lift to the petitioner lending an added advantage to them in the case filed in court.  Third party introduction in the case in the use of the concept indicated that respondent was assured and displayed like it owned the whole concept since its commencement to development. Respondent is said not to have acted honourably on the element that the Petitioner gave them the product hoping that in return they would make a payment for permitting them to use the said concept that they had developed.

The court of law hereby settles on the argument in the case and hereby finds that the petitioner had presented enough confirmation to build a strong case concerning the fact that there was an implied contract that existed between the Petitioner and the respondent. The case found out that the petitioner may have to substantiate the claims of the contract by indicating that indeed the petitioner revealed the concept to the respondent with request of the respondent and the respondent was aware that the petitioner expected remuneration for the use of the concept. Since respondent accepted the fact that there was enough proof, the affirmation made that the petitioner is not able to provide proof that there a contract existed should be overruled.

The petitioner argued the case was given a boost by the fact that there were strong resemblances between the respondent’s advertisements and the petitioner’s concept. The court of law does not agree with petitioner indicating that there was a resemblance in the Petitioner’s concept. In retrospect, the court of law declared that both the concepts do not resemble each other. The respondent’s evidence of coming up with the concept is based on two facts. The respondent’s character was developed by another company, Chiat/Day without the petitioners’ notions. In respect to the certifying that the invention was done by a different company, the respondent does not deny it bears the affliction of presenting the concept as an independent development by a different company.

However in one of the marketing advertisement clips presented in court, the commercial displayed a Mexican theme based on Salsa which the petitioner claimed to be their concept. This meant it was just combination of themes that had been used multiple times in various advertisements for their merchandise and that the ideas were not original.

In perspective on the way that Respondent chose to employ an outside party in the development of the cartoon character that they will use in their marketing, the respondent obliges to remunerate the Petitioner for utilizing their protected innovation without their consent. The petitioner accrued damages since the Chihuahua concept lost value due to the fact that the idea was already in the known in the public domain without the consent. The respondent will make sure that the petitioner is well compensated for the damages for the loss of value and time they were unable to benefit from the invention. The public made the assumption that the invention belonged to the respondent and therefore it will be in order that the respondent abides by the courts ruling.

Chiat/Day as well did not act in an honourable manner since Chihuahua was a concept developed by the petitioner. Now depending on this element, they still owe the petitioner even after developing a female model of the character. The sole act of copying the concept developed by the petitioner is that it puts them in a position that they will to full remunerate for any marketing linked to the same back to the ownership of the petitioner. It would clearly be a waste of time for the respondent to launch an appeal because the rule of law outlines its stand on the act on Copyright laws.

The respondent agrees to the fact that the proof provided based on the Petitioners claims they had a contractual agreement that if the respondent made use of character in question then they will fully compensate them. Change tort indicates that the respondent utilized the petitioner’s development to their benefit without them learning of their insight subsequently exceedingly criminal and exploitative in perspective on the stipulated law.

Along these lines anyway much Respondents tries to claim the choice, the law will consistently be followed in such manner. The ruling was delivered by the district court. This is because the nature of the case is based on the Copyright act in relation to the breach of an implied-in-fact contract. The district court found out that the copyright act justified all the petitioner’s claims and that the petitioner opposed the idea that the concepts are excluded from the copyright protection contained in the petitioner’s dissertation without permission.

In my view, the ruling delivered by the court is justified since the Respondent is found to have broken the law through the breach of contract agreed upon by both parties in the case. However, the parties ought to agree to the payment of a specific amount of money owing to the fact that there was breach of intellectual property contract given that the results made from a resolve made during the contractual agreement that a given amount is a good measure of the damages incurred. The respondent’s themes for the advertisements are not the same as compared to the Petitioner’s concept displayed on the billboards. The resemblance is only shown whereby both the petitioner and respondents used an identical breed for the food commercial.


(LTPG), L. P. (2015). 2015 Criminal Law and Evidence with P.C. 832: California. New York: LawTech Publishing Group

Barbara A. Bardes, M. C. (2015). American Government and Politics Today: Essentials 2015-2016 Edition. New York: Cengage Learning.

Miller, R. L. (2014). Cengage Advantage Books: Business Law: The First Course – Summarized Case Edition. Chicago: Cengage Learning.







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