Q: Felix owns a factory manufacturing watches in Shenzhen. On 5 May, the Administration for Industry and Commerce of Shenzhen issued an order to suspend operation
Felix owns a factory manufacturing watches in Shenzhen. On 5 May, the Administration for Industry and Commerce of Shenzhen issued an order to suspend operation of Felix’s factory. The Administration for Industry and Commerce suspected that the factory was producing watches under fake brand names and seized products from the factory with a value of RMB 500,000
On 8 June, Felix applied to the higher level of the Administration for Industry and Commerce of Shenzhen for review of the decision. On 7 July, the decision of the Administrative for Industry and Commerce of Shenzhen was annulled and the seized products were returned to Felix.
Felix claimed that the Administrative for Industry and Commerce should compensate him for the following losses:
1. The salary payable to the employees of the factory during the period of suspension;
2. The interest payable during the period of suspension of business on the loan obtained by Felix for operation of the factory;
3. The loss of profit during the period of suspension.
Requirement:
Are the claims made by Felix meritorious under the State Compensation Law? Please discuss.
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