In "Two Pesos vs. Taco Cabana, Inc.", which law was upheld to protect restaurant decor?

The correct answer is trade dress. Trade dress refers to the visual appearance of a product or its packaging that signifies the source of the product to consumers. In the case of "Two Pesos vs. Taco Cabana, Inc.," the court's decision centered on the aesthetic design and decor of Taco Cabana's restaurants, which were found to have distinctive elements that identified them in the marketplace. The ruling emphasized that this visual appearance, combined with the overall image and ambiance of the restaurant, constituted valuable trade dress that deserved protection under the law.

This case underscored the importance of trade dress in intellectual property law, allowing businesses to protect the unique aspects of their decor and ambiance that could influence consumer choices. By recognizing trade dress, the law helps maintain brand identity and prevents confusion in the marketplace, as consumers may associate specific designs and layouts with particular restaurants.