Unfair trade practices in the business world do create a negative impact on the corporate community and the negative effects are generally to those companies which are directly affected with it. At a particular point of time, the illicit performance of some companies as well as individuals might prevent another company form having better profits and more clients for their business operations. So, just to address this kind of problem, there are several provisions prohibiting such activities and the same is included in civil procedure code of 1872.

Basically Unfair competition Law tends to prevent the business closures and the bankruptcies and in a way protects and shelters the businesses from many acts like the:

• Misrepresentation of the Product
• Business Fraud
• Unpaid Debts
• Tortuous meddling
• Misappropriation of the Intellectual Property
• Trademarks law violation
• False Advertising
• Theft of trade secrets

The statutes which are prohibiting such kind of actions have been a main cause of many civil actions that are filed by the public prosecutors and the plaintiffs. This has also threatened the unruly parties from getting engaged in such kind of law infringements. Although, there are many companies or businesses who have found that the penalties have not been enough to give complete justice to them. After this, in the year 1977, California unfair competition laws have stretched itself more so as to include and cover many kinds of compensatory damages which are provided for the parties that are affected by it.

For instance, in case, the company has been proved that it has been utilizing other company’s trade logo for selling their products, then they’ll have to face the penalty and pay the original company whose business is affected with compensation in terms of money and the same will be dependant on the probable losses suffered by the company.

In another instance, if an employee is forced by a company to reveals the trade secrets of his previous company, then this can also initiate filing of the legal action against the present company.

In normal cases, the infringed parties do send cease request to violators of law before the filing of the court complaint. Such a document contains the demand forwarded by the plaintiff to the defendant to cease or stop their wrongful or illegal business practices. After this, if the infringed party ignores the request, the plaintiff can bring up a lawsuit in the court so as to recover the suitable from of damages in the form of compensation and also force the defendants to discontinue or cease such kind of illegal practices.

It is very sad to state that even when unfair competition law provides good amount of benefits as well as remedies for the victimized companies, come companies or businesses are still having lot of difficulty in pursuing their case in the court of law. Therefore, it is advised that for pursuing any from of unfair business lawsuit, the companies should consult a good legal counsel so as to ensure favorable decision in the court of law.