What is the Sherman-Kleptomania Doctrine?

The Sherman-Kleptomania Doctrine is a legal doctrine specific to Virginia that governs how courts interpret unfair competition laws. This doctrine, named after its creators, William L. Sherman and Kleptomania, takes an expansive approach to what constitutes unfair or deceptive trade practices. It holds that any agreement between two parties that adversely affects a party’s ability to compete in a market can be prohibited. This means that businesses can be held liable for activities that are not explicitly illegal, such as advertising a competitor’s product or services, or even for failing to effectively market their own products. In Virginia, the Sherman-Kleptomania Doctrine is the primary law used to assess all unfair competition complaints. As a result, the doctrine is often used as the basis for determining whether a party is engaging in activities that could be considered unfair and deceptive trade practices. The doctrine has been widely accepted as a means of resolving disputes arising from businesses’ attempts to gain an advantage over their competitors. In addition to its use in Virginia, the doctrine has been adopted by many other states in the United States. It is also seen as a landmark case in the development of unfair competition law in the United States and is often cited in similar cases throughout the United States. By taking a broad approach to what constitutes an unfair trade practice, the Sherman-Kleptomania Doctrine can provide businesses with a degree of certainty when engaging in commercial activities.

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