Question

Pepsi Cola Company sought to enjoin Pepsee Company of America and other beverage companies from, among other things, using the word Pepsee for their products. Pepsee contended that the Pepsi Cola trademark was a fraudulent representation in that, by use of the Pepsi name, the company represented that their beverage contained an extra amount of energy, or "pep", from the addition of various illegal chemicals. This claim is substantiated by evidence that such chemicals were used for the first three years of production, but not in the dozens of years of sales since, and Pepsi advertised to the public that no such chemicals were being used. Based on the court's ruling in Case 8.1, The Coca-Cola Co. v. The Koke Co. of America, the court in this case would most likely rule in favor of
a. Pepsi, because it had a valid trademark.
b. Pepsee, because of Pepsi's fraudulent misrepresentation.
c. Pepsi, because its product was first on the market.
d. Pepsee, because the court is interested in promoting a free market economy.

Answer

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