Business Law test 2

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Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink under the name "CoCoCafe." Darkroast Java, Inc., later markets a similar tasting drink under the name "KoKoKafe." This is most likely:

a copyright infringement. n
b patent infringement.
c trademark infringement.
d a theft of trade secrets.

c trademark infringement.

Copy Products, Inc., uses, in its ads, a trademark that is similar, but not identical, to the famous, registered mark of Imitated Goods, Inc. Copy's unauthorized use of the mark constitutes trademark dilution provided:

a consumers are confused. n
b Copy and Imitated are competitors.
c Copy's use is intentional.
d Copy's use reduces the value of Imitated's mark.

d Copy's use reduces the value of Imitated's mark.

Li'l Canine Company (LCC) uses a trademark that neither LCC nor anyone else has registered with the government. Under federal trademark law, LCC:

a can register the mark for protection.
b cannot register a mark that has been used in commerce.
c has committed trademark infringement.
d must put off registration until the mark is out of use for six months.

a can register the mark for protection.

Bubbly Cola features Sparkly Cola's trademark without its owner's permission. Bubbly's use of the mark is against the law provided:
:
a Sparkly's mark is registered.
b consumers are confused.
c Bubbly's use is intentional.
d Bubbly's use reduces the value of Sparkly's mark.

b consumers are confused.

Modern Clothing, Inc., and National Denim Corporation use the mark "Made by Members of the U.S. Textile Workers Union" on the tags of their products to indicate the participation of the union in the manufacture. Modern and National are not in business together and do not own this mark. This mark is:

a a certification mark.
b a collective mark.
c a service mark.
d trade dress.

b a collective mark.

Home Products Company and House & Yard, Inc., use the mark "Good Housekeeping Seal of Approval" to certify the quality of their products. Home Products and House & Yard are not in business together and do not own this mark. This mark is:

a a certification mark.
b a collective mark.
c a service mark.
d trade dress.

a a certification mark.

Trek Transport Company uses a mark associated with its name to distinguish its services from those of other trucking firms. This mark is:

a a certification mark.
b a collective mark.
c a service mark.
d trade dress.

c a service mark.

E-Shopping Corporation inserts Fiesta Mall, Inc.'s trademark as a meta tag in E-Shopping's Web site's key-words field without Fiesta's permission in a manner that suggests Fiesta authorized the use. This is:

a copyright infringement.
b patent infringement.
c trademark infringement.
d no infringement.

c trademark infringement.

Ric designs a new computer hard drive, which he names "Sci Phi." He also writes the operating manual to be included with each final product. Ric could obtain patent protection for:

a the hard drive.
b the "newness" of the hard drive.
c the name.
d the operating manual.

a the hard drive.

Gas Up, Inc., designs, makes, and sells a fuel injection system that copies Hybrid Corporation's design without Hybrid's permission. This is most likely:

a copyright infringement.
b patent infringement.
c trademark infringement.
d a theft of trade secrets.

b patent infringemen

In 2010, Sara writes Terror at the Track, a novel about racecar driving. Sara does not register the work with the appropriate government office. Under federal copyright law, Sara's work is:

a protected for ten years.
b protected for twenty years.
c protected for the life of the author plus seventy years.
d not protected.

c protected for the life of the author plus seventy years.

Fiona invents a new deep-sea fishing net, which she names "Great Catch." She also writes the operating manual to be included with each net. Fiona could obtain copyright protection for:

a the net.
b the "newness" of the net.
c the name.
d the operating manual.

d the operating manual.

The graphics used in "Go!," a handheld video game featuring racecars, are protected by:

a copyright law.
b patent law.
c trademark law.
d trade secrets law.

a copyright law.

Ellen publishes a book titled First Place, which includes a chapter from Frank's copyrighted book Great Racecar Drivers. Ellen's use of the chapter is actionable provided:

a consumers are confused.
b Ellen's use is intentional.
c Ellen's use reproduces Frank's chapter exactly.
d Ellen does not have Frank's permission.

d Ellen does not have Frank's permission.

Cathy uses, on her new recording Drive By, the exact note-for-note melody of a song written by Earl without his permission. This is:

a copyright infringement.
b patent infringement.
c trademark infringement.
d a theft of trade secrets.

a copyright infringement.

Joey reproduces Mina's copyrighted work without paying royalties. Joey is most likely excepted from liability for copyright infringement under the "fair use" doctrine if:

a Joey copies the entire work.
b Joey distributes the copies freely to the public.
c Joey's use has no effect on the market for Mina's work.
d Joey's use is for a commercial purpose.

c Joey's use has no effect on the market for Mina's work.

The process behind the production of "Fast Pace," a racecar video game, is protected by:

a copyright law.
b patent law.
c trademark law.
d trade secrets law.

d trade secrets law.

Diamond Financial Planners employs Ella, who is the firm's most productive performer. Ella, dissatisfied with the commission structure, quits to work for Feldstar Investments, Inc. She takes her list of Diamond clients to induce them to switch to Feldstar. Trade secrets law covers:

a Diamond's list of clients.
b Ella's performance.
c Feldstar's commission structure.
d none of the choices.

a Diamond's list of clients.

Chocolate Chip Cookie Corporation (4C) obtains, and gives its employees, a list of the customers of Sugar & Spice Sales, Inc. (3S). Under the law that applies to trade secrets, 4C's conduct is actionable provided:

a consumers are confused.
b 4C's conduct is intentional.
c 4C uses the list.
d 4C does not have 3S's permission to use the list.

d 4C does not have 3S's permission to use the list.

New Apps Company develops "Browser Lite," software to speed the display of graphics on Web sites. Browser Lite has the most copyright protection under:

a the Berne Convention.
b the Paris Convention.
c the TRIPS Agreement.
d the Madrid Protocol.

c the TRIPS Agreement.

Vladimir is a "payday" lender charged with filing false claims in bankruptcy proceedings against his customer-debtors. The standard of proof to find a defendant who has been charged with a crime guilty is:

a a preponderance of the evidence.
b beyond all doubt.
c beyond a reasonable doubt.
d clear and convincing evidence.

c beyond a reasonable doubt.

Biff wrongfully takes an unopened carton from a Cold Storage Warehouse loading dock, puts the carton in his car, and drives away. This is:

a burglary.
b forgery.
c larceny.
d no crime.

c larceny.

Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable, Ludwig must know:

a Milo.
b Nadine.
c that the marimba is stolen.
d what a marimba is.

c that the marimba is stolen.

Ira signs Jill's name, without her authorization, on the back of a check made out to her. This is:

a burglary.
b forgery.
c larceny.
d no crime.

b forgery.

Jake is charged with embezzlement. Embezzlement is not robbery because embezzlement may be committed without:

a a criminal act.
b a criminal intent.
c taking property from its owner.
d the use of force or fear.

d the use of force or fear.

Briana, an employee of Cotillion Bank, is charged with embezzlement, which requires:

a fraudulently appropriating another's property.
b obtaining lawful possession of property.
c physically taking property from its owner.
d the use of force or fear.

a fraudulently appropriating another's property.

Mona offers Ned, a building inspector, money to overlook the violations in her new warehouse. Ned accepts the money and overlooks the viola¬tions. Mona is charged with the crime of bribery. The crime occurred when:

a Mona decided to offer the bribe.
b Mona offered the bribe.
c Ned accepted the bribe.
d Ned overlooked the violations.

b Mona offered the bribe.

Rick manages an illegal gambling operation in his Sushi Bar & Grill. Rick reports the profits of the gambling operation as income from Sushi's legitimate activities on its tax returns. This is:

a embezzlement.
b larceny.
c money laundering.
d no crime.

c money laundering.

Bruno is a businessperson with investments in legal and illegal opera¬tions. Bruno may be subject to penalties under RICO:

a for making an unprofitable, but legal, investment.
b for the commission of any business fraud.
c only in a case involving a "racket."
d only in a case involving organized crime.

b for the commission of any business fraud.

Smitty, driving while intoxicated, causes a car accident that results in the death of Tiffany. Smitty is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for:

a any period of time.
b more than one year.
c more than six months.
d 12 months or less.

b more than one year.

Domino causes a disturbance at El Nino Cafe. He is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punish-able by:

a a fine only.
b imprisonment up to 12 months.
c imprisonment up to six months.
d imprisonment for one year or more.

b imprisonment up to 12 months.

Vance points a gun at Workman, threatening to shoot him. Workman hits Vance, causing his death. Charged with homicide, Workman can successfully claim as a defense:

a insanity.
b duress.
c entrapment.
d self-defense.

d self-defense.

Evan is charged with a crime. Almost all federal courts and some state courts would not hold Evan liable if, at the time of the offense, as a result of a mental disease or defect, Evan lacked substantial capacity to:

a appreciate the wrongfulness of his conduct only.
b appreciate the wrongfulness of his conduct and obey the law.
c appreciate the wrongfulness of his conduct or obey the law.
d obey the law only.

c appreciate the wrongfulness of his conduct or obey the law.

Page points a knife at Ray's daughter, threatening to hold her hostage and "cut" her unless Ray takes a certain file from Skelter Supplies Corporation, his employer. Charged with theft, Ray can successfully claim as a defense:

a insanity.
b duress.
c entrapment.
d self-defense.

b duress.

Yvon is charged with the crime of theft for taking Zach's briefcase, which Yvon mistakenly thought was hers. A mistake of fact is a proper defense:

a if the fact was not reasonably made known to the public.
b if the mistake negates the mental state necessary to commit a crime.
c if the perpetrator was intoxicated.
d under any circumstances.

b if the mistake negates the mental state necessary to commit a crime.

Mary, who is charged with a crime, claims that Nick, a government agent, entrapped her. For entrapment to be a valid defense:

a Mary must not have been predisposed to commit the crime.
b Nick must have pressured Mary into committing the crime.
c Nick must have suggested that the crime be committed.
d all of the choices.

d all of the choices.

The police arrest Lou, who confesses to a crime. Later, Lou refutes the confession and demands a trial, at which witnesses testify they saw him commit the crime. Lou is convicted and sentenced. The U.S. Constitution provides safeguards against all of the following except:

a deprivations of life or liberty without due process of law.
b not being allowed to question witnesses.
c punishment.
d self-incrimination.

c punishment.

Alan, the president of Bayside Investments, Inc., and Colin, Bayside's accountant, are charged with a crime, after the police search Bayside's offices. Under the exclusionary rule:

a certain Bayside records are excluded from subpoena.
b certain parties to a criminal action may be excluded from a trial.
c illegally obtained evidence must be excluded from a trial.
d persons who have biases that would prevent them from fairly decid¬ing the case may be excluded from the jury.

c illegally obtained evidence must be excluded from a trial.

eri is indicted. Before she is arrested, she confesses to the crime in a conversation with Kelly, the arresting officer. Kelly then arrests Jeri and advises her of the right to counsel. Later, Jeri claims that her statement should be excluded as evidence from her trial. The statement will most likely be:

a admitted because Jeri knew she did the crime and confessed.
b admitted because Jeri made it before being advised of her rights.
c excluded because a confession is not admissible in a criminal trial.
d excluded because it was elicited before Jeri was advised of her rights.

d excluded because it was elicited before Jeri was advised of her rights.

Herb, a computer programmer for Inventory Control Corporation, is arrested in his employer's parking lot on suspicion of larceny. Herb must be informed of his right to:

a a trial by jury.
b punishment.
c question witnesses.
d remain silent.

d remain silent.

In business deals, Felipe, the chief executive officer of Glazed Donuts, Inc., follows duty-based ethical standards. These are most likely derived from:

a a corporate ethics code.
b a cost-benefit analysis.
c philosophical reasoning.
d the law.

c philosophical reasoning.

Flexo Trucking Company transports hazard¬ous waste. Garn is a Flexo driver, whom the company knows drives longer hours than federal regulations permit. One night, Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill City's water source, forcing the residents to move away. Flexo acted unethically because:

a Flexo showed reckless disregard for Hill City's residents and others.
b Garn exceeded the federal time limit.
c harm was caused by an unfortunate accident.
d Hill City should have better protected its water source.

a Flexo showed reckless disregard for Hill City's residents and others.

Lyle, vice-president of sales for Mi-T Electric, Inc., adheres to Judeo-Christian relig¬ious ethical standards. With respect to their application, these standards are usually:

a absolute.
b analytical.
c discretionary.
d utilitarian.

a absolute.

In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies his belief that all persons have fundamental rights. This is:

a a religious rule.
b the categorical imperative.
c the principle of rights.
d utilitarianism.

c the principle of rights.

Made4U Goods, Inc., asks its employees, many of whom are mem¬bers of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require:

a a choice among alternatives to produce the maximum so¬cietal utility
b a determination of whom an action will affect.
c an assessment of the effects of alternatives on those affected.
d the acquiring of the means of production by workers.

d the acquiring of the means of production by workers.

Solid Tool Company's decision makers view a particular risk in the use of Solid's product as open and obvious. Continuing to market the product without telling consumers of the risk could be justified from a perspective of:

a duty-based ethics.
b Kantian ethics.
c rights-based ethics.
d utilitarian ethics.

d utilitarian ethics.

Bob, research manager for CornAgri Products, Inc., ap¬plies utilitarian ethics to determine that an action is morally correct when it produces the greatest good for:

a Bob.
b CornAgri.
c the fewest people.
d the most people.

d the most people.

In making decisions for United Merchandising Company, Vance uses a cost-benefit analysis. This is part of:

a duty-based ethics.
b utilitarianism.
c Kantian ethics.
d the principle of rights.

b utilitarianism.

In deciding questions of corporate social responsibility, Valley Disposal & Recycling, Inc., is concerned with:

a how the corporation can best fulfill any ethical duty to society.
b the effect on corporate profits of ignoring any ethical duty to society.
c whether the corporation owes any ethical duty to society.
d all of the choices.

d all of the choices.

Chuckie, president of DrinkUp Fresh Beverages, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it:

a gives business profits priority over production costs.
b tends to justify human costs that many find unacceptable.
c ignores the practical costs of a given set of circumstances.
d requires complex cost-benefit analyses of simple situations.

b tends to justify human costs that many find unacceptable.

Applied Business Corporation makes and markets its products nationwide. Under the stakeholder approach, to be considered socially responsible when making a business decision, Applied must take into account the needs of:

a its consumers, the community, and society only.
b its employees and owners only.
c its employees, owners, consumers, the community, and society.
d no one.

c its employees, owners, consumers, the community, and society.

Ethical standards would most likely be considered violated if Retail Mart Corporation deals with a company in a developing nation that:

a agrees to produce goods at Retail Mart's desired price.
b goes unnoticed by "corporate watch" groups.
c exploits its workers.
d pays its workers less than the U.S. minimum wage.

c exploits its workers.

In studying the legal environment of business, Professor Dooley's students also review ethics in a business context. Ethics includes the study of what constitutes:

a fair or just behavior.
b financially rewarding behavior.
c legal behavior.
d religious behavior.

a fair or just behavior.

Mariah works in the public relations department of New Trends Sales Company. Her job includes portraying New Trends's activities in their best light. In this context, ethics consist of:

a a different set of principles from those that apply to other activities.
b the same moral principles that apply to non-business activities.
c those principles that produce the most favorable financial outcome.
d whatever saves New Trends's "face."

b the same moral principles that apply to non-business activities.

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its:

a operators only.
b operators, owners, suppliers, the community, or society as a whole.
c owners only.
d suppliers, the community, or society as a whole only.

b operators, owners, suppliers, the community, or society as a whole.

Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve the extent to which Peak & Vale has:

a a legal duty beyond those duties mandated by ethics.
b an ethical duty beyond those duties mandated by law.
c any duty beyond those mandated by both ethics and the law.
d any duty when it is uncertain whether a legal duty exists.

b an ethical duty beyond those duties mandated by law.

DeLouse Plastics Corporation pays its executives an excessive amount relative to other employees and to what executives at competitive companies are paid. This is most likely to be challenged as:

a illegal and unethical.
b illegal only.
c neither illegal nor unethical.
d unethical only.

d unethical only.

Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate's decision makers can predict whether a given business action would be legal in:

a many situations.
b all situations.
c no situations.
d practically no situations.

a many situations.

Kennedy Capital Corporation provides other firms with funds to expand op-erations. If Kenney strictly complies with existing laws, the firm will:

a fulfill all business ethics obligations.
b fulfill no business ethics obligations.
c fulfill some business ethics obligations.
d not need to fulfill any business ethics obligations.

c fulfill some business ethics obligations.

Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to en¬sure that Flo-Thru's activities are legal and ethical. The best course for Eden and Flo-Thru is to act in:

a good faith.
b ignorance of the law.
c regard for the firm's shareholders only.
d their own self interest.

a good faith

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