Not sure if this is ok, or if there are no restrictions and you can optimize for whatever you want. Say for example there is a store called ABC, and they sell widgets. Could you optimize for that site, like "buy ABC widgets" and title would have there name for example etc, Buy ABC widgets online today and save yourself some money. Any advice please?
I think they can drag you to the court for this for using someone else's brand. Thats kind of forgery.
You'll have legal problems for the title etc but for links with the keywords it will be hard to prove.
As long as you will stay "a small fish" no one would care, but once you are popular, they will contact you, ask you to remove it all. no one will come for you, - they will contact your hosting company asking them to remove your site. If you wanna fight them - use an offshore hosting and privet domain, then they will have to use expensive resorce to track you down which mean they might not even try.
As longs as your not trying to impersonate the other company you should be fine. If your reselling their products or services and making them money why should they care. Don't use their logos without permission, and don't copy their website text either.
I guess it has a lot to do with how you are optimizing for that companies name? Obviously you are going to have to have their name somewhere in your content and have revelant backlinks to your site that say <a href="http://yourdomain.com">Other Company Name Here</a> so in some ways you would be saying you are that site in your anchor text, I think there is a fine line here..