ACCT 324- Exam #4

A ______ is a process, product, method of operation, or compilation of information that gives a businessperson an advantage over his or her competitors

Trade secret

Which of the following is a correct statement regarding trademark dilution laws?

Trademark dilution laws prohibit the use of distinctive or famous trademarks, even without a showing of consumer confusion.

What is the term for the individual who holds title and possession of property of a trust for the benefit of another person?

Trustee

A(n) _____ arrangement occurs when a holder issues a license to use a patented object only if the licensee agrees to buy some nonpatented product from the holder.

Tying

Which of the following is a correct statement regarding the legality of cross-licensing and tying arrangements?

Both cross-licensing and tying arrangements are illegal.

______-licensing occurs when two patent holders license each other to use their patents only on the condition that neither licenses anyone else to use his or her patent without the other's consent.

Cross

The insurance policy becomes effective on the:

Effective date

Which of the following is an example of a statutory restriction on land use?

Environmental regulations

Which of the following encourages individuals to make decisions about issues that frequently arise at the end of life, such as what to do with a person's organs and body after death?

Estate planning

When a patent is issued for an object, it gives its holder the ______ right to produce, sell, and use the object of the patent for 20 years from the date of the ______.

Exclusive; application

The legal procedures that must be followed to effectuate a transfer of property include which of the following?

Execution Delivery Recording Acceptance

When a bailment is ______, there is no need for a written agreement unless the statute of frauds applies to the bailment.

Express

An easement is a(n) ______ right to use some part of another's land for a specific purpose without taking anything from it.

Irrevocable

To void an insurance contract due to the applicant's misrepresentation of significant information in an insurance application, the insurance company must demonstrate that the misrepresentation was ______, and the company's knowledge of it would have resulted in the ______ of the offer.

Material; rejection

Insurance is a contract in which the insured party makes payments to the insurer in exchange for the insurer's promise to make payment or transfer goods to the insured or a named beneficiary in the event of injury to or destruction of the insured party's ______ or ______.

Property; life

In patent litigation, what should the patent holder do when filing patent infringement contentions?

Provide copies of all documents relating to the conception of the patent.

Which of the following are ways of voluntary transfer of property?

Purchase, Sale

If the landlord interferes with the tenant's use and enjoyment of the property, she could be liable for breach of the covenant of:

Quiet enjoyment

______ the will means canceling it.

Revoking

An insured party who decides to discontinue a policy at any time can do which of the following?

Tell the insurance company to cancel the policy Stop paying the premiums

Which of the following are categories of leases that can be created?

Tenancy at will Period tenancy Definite term

A ______ involves co-ownership by married couples.

Tenancy by the entirety

A condominium interest gives the holder exclusive ownership rights of a unit within the condominium and a ______ with the other condominium owners over the land.

Tenancy in common

Which of the following is the most common type of co-ownership of real property?

Tenancy in common

If premises are used for commercial purposes, the ______ is responsible for maintaining the premises.

Tenant

The most distinguishing factor of the landlord-tenant relationship is the ______ right to ______ possession of the property named in the lease.

Tenant's; exclusive

A definite-term lease is also known as a:

Term for years

What is the term for the requirement that an individual must be old enough and of sound mind to create a valid will?

Testamentary capacity

What is the term for an individual who writes a will?

Testator

Competitors may discover a trade secret by any lawful means, such as by doing ______ engineering.

Reverse

During which decade did the United States Congress pass the Federal Trademark Dilution Act?

1990s

During what decade did the United States Congress pass the America Invents Act?

2010s

What is the typical grace period allowed in an antilapse clause for payment of an overdue insurance premium?

30 days

Which of the following is a type of trade secret?

A compilation of information

Which of the following is true regarding bailments?

A bailment may be for the mutual benefit of the bailor and the bailee.

Which of the following qualifies for trademark protection?

A distinctive word

Which of the following protects a product, process, invention, machine, or plant produced by asexual reproduction?

A patent

Which of the following describes a settlor?

A person who creates a trust

Which of the following represents the right to go onto someone's land and take part of the land or a product of it away from the land?

A profit

Which of the following is not a main provision of the Digital Millennium Copyright Act?

A provision that makes it legal to circumvent the encryption and other antipiracy technology that protects commercial software

Which of the following occurs when a holder issues a license to use a patented object only if the licensee agrees to buy some nonpatented product from the holder?

A tying arrangement

______ is when a tenant moves out of the leased premises before the end of the lease term, has no intent to return, and has defaulted on rent payments to the landlord.

Abandonment

What are the elements required for a valid gift?

Acceptance Delivery Donative intent

If the insured and the insurance company cannot agree on the ______ of the loss, the insured can demand an evaluation of the loss under the policy's ______ clause.

Actual value; appraisal

A person can express health care wishes and limits through what type of documents?

Advance directives

What is the term for describing the fact that a will can be changed by a testator?

Ambulatory

Which of the following is a legal remedy available to the owner of a registered mark if an infringer illegally uses the mark to pass off goods as being those of the mark owner?

An injunction

_______ ________ refer to all or part of an individual's body that the individual wishes to donate to a hospital, university, organ bank, etc.

Anatomical gifts

Which of the following is an insurance provision that provides a grace period in which to make an overdue payment?

Antilapse clause

The insured has a duty to disclose all material information on the insurance:

Application

If ______ for the insured and the insurer fail to agree on the actual value of the loss, they typically submit their different evaluations to a(n) ______ who will resolve the differences.

Appraisers; umpire

An easement or profit is ______ when it runs with property adjacent to the property on which it exists.

Appurtenant

Some insurance contracts include clauses that force both the insurer and the insured to submit any dispute to a(n) ______, a neutral third party who will listen to the evidence and arguments presented by both parties and render a decision regarding the dispute.

Arbitrator

Which section of the Uniform Commercial Code (UCC) governs documents of title?

Article VII

If a bailment is intended to benefit only the bailor, the bailee is liable for damage to the property caused by the ______ negligence.

Bailee's gross

Which of the following refers to a relationship that arises when one party transfers possession of personalty to another party to be used by the recipient in a stipulated manner for a stipulated time?

Bailment

Generally, a requirement of a will is that the will:

Be written typically by typing it on regular paper

An agreement that gives temporary insurance until the company decides to accept or reject the insurance application is known as a:

Binder

Insurance that protects a person or property from accidental injury, such as workers' compensation or automobile insurance, is ______ insurance.

Casualty

Regarding the extent to which the real estate seller must disclose known defects to the buyer, the traditional answer was ______, or let the buyer beware, meaning that the seller had no obligation to tell the buyer about any problems.

Caveat emptor

Every business should purchase a _____ policy that protects against a broad range of risks that the firm can specify, including personal injury suits by customers and suits by competitors over intellectual property.

Commercial general liability

What type of insurance policy protects a business against a broad range of risks that the firm can specify, including personal injury suits by customers and suits by competitors over intellectual property?

Commercial general liability

______ carriers are licensed to provide transportation services to ______.

Common; the public

With a _____ estate, should a prohibited event occur or a required event fail to occur, the interest will be terminated.

Conditional

The owner of a ______ estate possesses the same interest as the owner of a ______ absolute estate, but if a prohibited event occurs or a required event fails to occur, the interest will be terminated.

Conditional; fee simple

Which of the following is a means by which people acquire title to property?

Confusion

The ______ delivery of a gift involves the delivery of an item that gives access to the gift or represents it.

Constructive

A trademark, when used with a product, helps ______ identify the product with the ______.

Consumers, producer

A(n) ______-term lease automatically expires at the end of the specified term.

Definite

An insured might be asked to provide the insurance company with a(n) ______ as part of his or her duty to the insurer.

Deposition

As part of their duty to cooperate with the insurer, insured individuals might be asked to provide the insurance company with a formal out-of-court statement known as a(n) ______ or ______ at trial.

Deposition; testify

Which of the following is not a means by which people acquire title to property?

Diffusion

Trademark ______ laws prohibit the use of distinctive or famous trademarks, even without a showing of consumer confusion.

Dilution

The term trade ______ means the overall appearance and image of a product. Multiple choice question.

Dress

The No Electronic Theft Act is:

Federal Law

Which judicial body has jurisdiction over a patent infringement suit?

Federal court

A(n) ______ is the most complete estate a person may have.

Fee simple absolute

If all the legal requirements are met, unless the contrary is stated, the law presume the conveyance is a:

Fee simple absolute

Nina rents an apartment from Jason. According to the contract, she must pay the rent on or before the fifth day of every month. If Nina fails to pay the rent by the fifth day, she has:

Forfeited her interest in the premises

Which of the following refers to when one party gives up all rights in a leased property because of not fulfilling a part of the lease?

Forfeiture

A general warranty deed contains certain warranties or promises by the:

Grantor

A bailment may be ______ or for ______.

Gratuitous; consideration

In terms of the various ways to categorize insurance, if the purchaser is neither the insured nor the insurer, it is ______ insurance.

Group

What is the name for the individual who makes health care decisions for a principal who is incapacitated?

Health care proxy

Examples of statutory restrictions on land use include ______ and ______.

Historic preservation statutes; environmental regulations

A(n) ______ trust is called an involuntary trust because the courts, rather than settlors, create them.

Implied

______ warranty of habitability is a requirement that the leased premises be fit for ordinary residential purposes.

Implied

The ______ generally ensures that the landlord is responsible for repairs to major defects in the rental property.

Implied warranty of habitability

In a divorce, a couple's tenancy by the entirety ownership interest converts to a tenancy:

In common

A(n) ______ clause prohibits the insurer from delaying payment because it decides to investigate the insurance application for fraud.

Incontestability

Which of the following is a state-mandated provision ensuring that after an insurance policy has existed for a specified period, the insurance company cannot contest any statements made in the application?

Incontestability clause

Usually, express trusts are written and called trust ______ or ______.

Instruments; agreements

Only an individual with a(n) ______ can enter into a valid insurance agreement.

Insurable interest

If the ______ is liable to a third party for loss, his or her insurer has a duty to pay these compensatory damages.

Insured

Insurance is a contract in which the insured party makes payments to the insurer in exchange for the insurer's promise to make payment or transfer goods to the ______ or a named ______ in the event of injury to or destruction of the insured party's property or life.

Insured; beneficiary

For an insurance company to cancel a policy, the company must give the ______ advance notice, typically including a ______ period, before the policy is canceled.

Insured; grace

If the insured did not have an insurable interest, the insurance contract is void and the:

Insurer is not required to pay on a claim

Which of the following is not addressed by the Uniform Probate Code?

Intestacy insurance

When a person dies without a will, the person died:

Intestate

Which of the following is correct regarding tenancy in common?

It gives each co-owner the right to own an unequal share of the property. It gives each co-owner the right to sell his or her interest without the consent of the others.

Which of the following is correct regarding a bailment?

It involves a person transferring the possession of a property to another.

Which of the following best describes a bill of lading?

It is a document issued by a person engaged in the business of transporting goods that verifies receipt of the goods for shipment.

Which of the following is correct regarding whole-life insurance?

It is distinctive because it has a cash-surrender value.

A tenant may transfer his or her interests in the property unless:

It is prohibited by the lease agreement

Which of the following is correct regarding a surrender of property?

It must be in writing. It is a mutual agreement.

An easement or profit is appurtenant when:

It runs with land adjacent to the property on which it exists

Which of the following forms of co-ownership of real property recognizes equal ownership, with the property being divided equally among the survivors upon the death of one of the co-owners?

Joint tenancy

Life insurance allows a business to take out a policy on a _________ and provide payment n the even of the person's death.

Key employee

Courts decide whether a person is of sound mind by considering whether the testator:

Knows the extent of his or her property Knows he or she is making a will Understands traditions regarding who should get his or her property

Under the ______ Act, a mark might be used without permission on completely unrelated goods, potentially diminishing the value of the mark.

Lanham

If a landlord sells a rented property, the:

Lease is legally binding and is transferred to the new owner

Which of the following is not a nonpossessory estate?

Leasehold

Without _____ insurance, a store could experience severe financial loss for responsibility to a customer for injuries resulting from the store's negligence.

Liability

________ insurance protects a business from tort responsibility to third parties.

Liability

A(n) ______ is a temporary and revocable right to use another's property.

License

With which type of interest in real property is a future interest in an estate most likely to be associated?

Life estate Conditional estate

Which of the following is a type of property insurance?

Livestock insurance

If the seller has legal title to the property, there are no liens on it, and there are no restrictions of which the buyer is not aware, the title is said to be:

Marketable

The laws of intellectual property protect property that is primarily the result of ______ creativity rather than _______ effort.

Mental, physical

Rent can be paid to the landlord in various forms, such as:

Money Services

________ hazard theory suggests that individuals who are insulated from risk sometimes behave differently.

Moral

______ theory suggests that a person might not lock his or her car because an insurance company covers the risk of theft.

Moral Hazard

Personal property is generally defined as ______ property.

Movable

What is the primary international protection for intellectual property?

Multilateral conventions

A ______ will is one that two or more testators execute in which they leave property to each other as long as the survivor agrees that when he or she dies, the remaining property will be distributed according to a plan created by all testators.

Mutual

Most insurance claims for damages the insured causes a third party are settled through ______ between the insurer and the third party.

Negotiation

Which of the following is a correct statement regarding the Agreement on Trade-Related Aspects of Intellectual Property Rights?

No signatory country can give its own citizens better intellectual property protection than it grants to citizens of other signatories.

In order for patent protection to be granted, the object of the patent must be:

Nonobvious

To begin the insurance defense process, the insured must ______ his or her insurer of the claim for which the insured is potentially liable.

Notify

Which of the following should a possession be to qualify as an adverse possession?

Notorious Open Actual

For patent protection to be granted, the object of the patent must be ______, or new.

Novel

Which of the following is a lawful means to discover a trade secret?

Observing its use on a public plant tour

When can an inventor bring a patent infringement suit in a federal court against anyone who uses, sells, or manufactures the patented invention?

Once the patent has been issued

Condemnation is the legal process by which a transfer of property is made against the protest of the:

Owner

In most states, the finder of lost property has title to the lost goods against all except the:

Owner

Which of the following is a correct statement regarding the duration of patent protection of an object?

Patent protection lasts for twenty years from the date of patent application.

All property that is not land (or not permanently affixed to land) is considered:

Personal property

The most common use of restrictive covenants today is in urban developments sometimes called:

Planned communities

The holder of a leasehold has a(n) Blank______, but not a(n) Blank______, interest.

Possessory; ownership

______ liability insurance protects the manufacturer of a good from loss due to damages paid to people injured while using the good.

Product

A(n) _____ is the right to go onto someone's land and take part of the land or a product of it away from the land.

Profit

What are the two categories of property?

Real and personal

If a mark is _____, the holder of the mark may recover damages from an infringer who uses it to pass off goods as being those of the mark owner.

Registered

Promises made by property owners to use or not use their land in particular ways are known as:

Restrictive covenants

Which of the following are promises made by property owners to use or not use their land in particular ways?

Restrictive covenants

What is the term for someone who creates a trust?

Settlor

In a trust, the _____ delivers and transfers legal title to property to a _____, who holds and uses the property for the benefit of a third person.

Settlor; trustee

According to judicial interpretation of the Federal Trademark Dilution Act, marks need not be identical, only:

Similar

What type of deed promises only that the grantor has not done anything to lessen the value of the estate?

Special warranty

An easement is an irrevocable right to use some part of another's land for a(n) ______ purpose without taking anything from it.

Specific

A transfer of less than all of a tenant's interest in a leased property is called a(n):

Sublease

Which of the following refers to an agreement between the landlord and the tenant for the tenant to give up possession and interest in the leased property during the lease term?

Surrender

In its Cruzan v. Director, Missouri Department of Health decision, the United States Supreme Court held that a person has a constitutionally protected right under ______ the U.S. Constitution to refuse life-sustaining medical procedures.

The Fourteenth Amendment to

Which of the following conventions specifically protects industrial rights and restricts unfair competition?

The Paris Convention of 1883

Which organization developed the Universal Copyright Convention?

The United Nations

To succeed on a claim of trade-dress infringement, which of the following must a party prove?

The alleged infringement creates a likelihood of confusion. The trade dress is inherently distinctive.

Which party is the person named to receive the insurance proceeds in the event of injury or damage?

The beneficiary

Which of the following is correct regarding term-life insurance?

The beneficiary receives payment only if the insured dies within the specified term.

In an insurance relationship, which party makes a payment called a premium?

The insured

After the lease has been signed and the tenant has taken possession of the leased property, who can change the person receiving the rent compensation?

The landlord

If a disaster destroys the premises, what will happen to the lease?

The lease is typically terminated.

Which of the following are the two types of express trusts?

The living trust and the testamentary trust

In patent litigation, what procedural step occurs immediately after the initial pleadings are filed?

The patent holder files patent infringement contentions.

What is the name of the individual who collects and distributes the property of a decedent's estate?

The personal representative

Typically, which parties to a lease can transfer their leased property rights?

The tenant The landlord

To be valid, who must typically sign a will?

The testator

Identify an element a party must prove to succeed on a claim of trade-dress infringement.

The trade dress is primarily nonfunctional.

A will is generally valid if it meets which of the following requirements?

The will must include the testator's signature. The will must be in writing. The will must be attested by witnesses. The testator must have testamentary capacity while writing the will.

When a bailment is for the purpose of transportation or storage of goods, certain documents of ______ may be issued in conjunction with the bailment.

Title

If the bailment is intended ______ the bailee is liable for damage to the property caused by the bailee's gross negligence

To benefit only the bailor

Which of the following are reasons why individuals engage in estate planning?

To promote family harmony To provide for their family financially after death

The insurer is sometimes called the:

Underwriter

What is the term for recommendations about what legal rules should govern on a particular topic?

Uniform laws

The duties and rights of a lease can be classified under which of the following main areas?

Use Maintenance Rent Possession

If the insurance applicant makes a misleading or misrepresentative material statement and the insurance company relies on this false statement, the insurance company can:

Void the contract

Which of the following is the most common means by which property is acquired?

Voluntary transfer

Identify the types of documents of title that govern bailments.

Warehouse receipts Bills of lading Delivery orders

If the life holder of a life estate neglects or abuses the property, or fails to make necessary repairs such that the property's value diminishes, the future holder can bring a legal action to recover damages for:

Waste

How might a trust terminate?

When a specified event occurs At a set date

When does a periodic-tenancy lease end?

When either the landlord or the tenant gives sufficient notice

In the context of the voluntary transfer of ownership, when is the delivery of a gift considered actual?

When it is physically presented When it is constructively presented

Typically, who is liable for an injury that occurs on leased premises?

Whoever has control over the space where the injury occurred

The treaties that ensure international protection for patents and copyrights are generally administered by the ______.

World Intellectual Property Organization