business names Businesses are commonly conducted using a name other than that of the owner of the business. For example the retail business opposite USP trades as COST-U-LESS. There is no person, either natural or artificial, known as COST-U-LESS, yet we commonly think of this business as being COST-U-LESS. This is an example of the phenomenon of business names. Other examples readily come to mind. (i) List some other examples. (ii) What explains the practice of business names? Why do persons who own and conduct a business often present the business to the public using a name other than their own name? (Note, this is a life question not a law question.) (iii) The law accepts the long established practice of conducting a business using a name other than that of the owner of the business. The practice however produces a (singular) practical problem. What is it?
Carefully read the Registration of Business Names Act. As with any legislation some sections are more important than others. Identify the more important sections. Then consider the following further questions. (iv) What solution does the Act provide to the practical problem that arises from the use of business names? (v) What provision is made to ensure (encourage) implementation of the Act’s solution? (vi) In the event of non-compliance there will be no solution to the problem presented by use of a business name. In this circumstance what may a third party who wishes to sue do? (vii) What restrictions (if any) are there in selecting a business name?