Business Law Midterm

Created by thisnameistaken 

Upgrade to
remove ads

25 terms

a

1. Trademarks, trade names, patents, and copyrights represent a category of property called:
a.
intangible property
b.
tangible property
c.
real property
d.
statutory property
e.
personal property

e

2. Trademarks, trade names, patents, and copyrights represent a category of property called:
a.
tangible property
b.
real property
c.
statutory property
d.
personal property
e.
none of the other choices

e

3. Which is not a form of intellectual property?
a.
trademarks
b.
copyrights
c.
trade secrets
d.
patents
e.
all of the other choices are forms of intellectual property

e

4. A trademark would not include a:
a.
phrase
b.
name
c.
design
d.
word
e.
all of the other choices could be trademarks

e

5. The Lanham Act provides for:
a.
the process for applying for patents
b.
the copyright of books
c.
the creation of trademarks by the government
d.
the use by government of all patents
e.
none of the other choices

e

6. If a company registers its trademark under the Lanham Act, the registration is good for:
a.
one year
b.
five years
c.
twenty years
d.
until revoked by the Trademark Office
e.
none of the other choices

d

7. ____ trademarks are not favored by the law and must be shown to have acquired customer recognition to be given legal protection.
a.
Suggestive
b.
Arbitrary and fanciful
c.
Generic
d.
Descriptive
e.
None of the other choices

b

8. Cybersquatters who claim domain names that include trademarks that belong to others:
a.
may not register the domain name
b.
may be able to sell the domain name
c.
are the legitimate owners since domain names and trademarks are not related
d.
must receive permission from the Trademark Office to do so
e.
none of the other choices

c

9. The benefit or advantage of having an established business and secured customers is:
a.
trade dress
b.
trade secret
c.
goodwill
d.
brand name
e.
none of the other choices

a

10. Among the forms of intellectual property, copyrights are:
a.
one of the easiest forms of protection to obtain
b.
a weak form of protection
c.
considered to have the least commercial value
d.
all of the other specific choices
e.
none of the other choices

b

11. The law of copyright gives a copyright owner all of the following rights except the right:
a.
to reproduce the work
b.
to claim public domain works
c.
to perform the work in public
d.
to display the work
e.
to publish the work

a

12. What allows exclusive control over original written works, musical compositions, art and photography; including control over reproduction, display and derived works:
a.
copyrights
b.
patents
c.
trademarks
d.
trade names
e.
servitude

e

13. Which of the following factors is not relevant in considering whether a use of copyrighted material is fair use not requiring payment?
a.
the purpose of the copying
b.
the nature of the copyrighted work
c.
the extent of the copying
d.
the effect of the copying on the market for the work
e.
none of the other choices; all are relevant

b

14. In MGM Studios v. Grokster, where MGM sued Grokster for providing software that allowed others to reproduce copyrighted files, without permission, electronically. The Supreme Court found that MGM:
a.
could collect the royalty value as damages from Grokster for every copy made, but could not prevent Grokster from offering a copying service
b.
could get an injunction against Grokster offing the copying software
c.
could not prevent Grokster from providing the copying software and service due to First Amendment protection
d.
could not block Grokster from providing the copying software service so long as it was for fair use
e.
none of the other choices

d

15. A patent may not be issued for:
a.
a process
b.
a manufacture
c.
a composition of matter
d.
a theory
e.
it may be issued for any of the other choices

d

16. What is not true about trade secrets:
a.
they must be registered
b.
they must be confidential information
c.
they must include information valuable to competitors
d.
they must provide an advantage to the owner
e.
all of the other choices are true

d

17. Which of the following could be a trade secret?
a.
a mathematical formula
b.
a cake recipe
c.
list of clients
d.
all of the specific choices could be a trade secret
e.
none of the other choices could be a trade secret

d

18. Suppose a company steals a commercial trade secret from another company:
a.
there may be criminal prosecution under the Federal Trade Secrets Act
b.
there may be criminal prosecution under the Economic Espionage Act
c.
there may be criminal prosecution under the Trade Secret Protection Act
d.
there may be criminal prosecution under the American Economic Data Act
e.
none of the other choices

d

Fact Pattern 10-1

Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie.

Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased.

Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons to increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit.

Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney.

19. Refer to Fact Pattern 10-1. Under the common law, Lulene's offer:
a.
is valid based on clarity
b.
is valid based on communication
c.
is valid based on intent
d.
is invalid based on indefiniteness
e.
is invalid based on illegality

a

20. An authoritative document that provides an orderly summary and presentation of the common law of contract is:
a.
the Restatement (2d) of Contracts
b.
the Contracts Commercial Code
c.
Cohen on Contracts
d.
the Statute of Frauds
e.
the Federal Register

e

21. Modern definitions of contracts center on:
a.
lex mercatoria
b.
commercial rules
c.
evidence of seals
d.
duties imposed by the International Convention on Contracts
e.
none of the other choices

a

22. Basic elements of a contract need not include:
a.
negotiation
b.
agreement
c.
consideration
d.
legal capacity
e.
all other choices

e

23. You leave your poodle at a new grooming shop and tell them to wash the dog--a $30 service. They do that and also paint the poodle's nails and tie ribbons in his hair--these services are an extra $10. You pay them for the wash. What about the extra $10 in services?
a.
an express contract existed; you must pay the $10
b.
an implied contract existed; you must pay the $10
c.
a quasi-contract existed; you must pay the $10
d.
the UCC would hold that no contract existed, so no payment
e.
none of the other choices

b

24. Which element is not needed for an offer to be effective:
a.
clear intent by offeror
b.
willingness to accept consideration
c.
proper communication
d.
clear and certain terms and conditions
e.
all other choices are necessary

e

25. Termination of the offer can occur through the action of the parties or by the operation of law. The parties can terminate the offer by:
a.
revocation
b.
rejection
c.
counteroffer
d.
revocation or rejection only
e.
all of the other choices

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set