Business law exam 2 chapters 8, 10, 11, 12, & 13

United Inc., a U.S. film production company, files a suit against Video Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico's national laws. Both the U.S. and Mexico are signatories of the TRIPS agreement. What is United entitled to under TRIPS?

the same rights and protection under Mexican law as video.

Parties to sales and lease contracts are not free to agree to terms different from those stated in the UCC.

false

Pricing information is not a trade secret.

false

The offeror must have a serious intention to become bound by the offer in order for the offer to be effective.

false

Under the Magnuson-Moss Warranty Act, a buyer must receive warranty for goods.

false

Under the doctrine of mitigation of damages, the duty owned depends on the nature of the damages.

false

The bankruptcy trustee sells the nonexempt assets and distributes the proceeds to creditors.

TRUE

Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of

legality

Online contracts may be formed not only for the sale of goods and services, but also for

licensing

Gargantua Equipment Corporation registers its trademark as provided by federal law. This registration gives notice that the mark belongs exclusively to Gargantua. This notice is

nationwide

Under Chapter 11, the debtor's obligations most likely to be discharged are

none of the choices a domestic-support obligation taxes accruing within the last three years claims based on the debtor's willful or malicious conduct or fraud

To be protected under the Copyright Act, a work must be

original and fixed in a durable medium

The right of the seller or lessor to repair, adjust, or replace defective or nonconforming goods is referred to as

a cure

Dana operates Energy, Inc., a corporation in the fuel-supply business. Dana wants to create a plan under which the firm pays a portion of its debts, is discharged of the remainder, and is allowed to continue in business. Energy should file a petition in bankruptcy for relief through

a reorganization

To make a sale to Gourmet, Inc., Hill Valley Commodities asks Gourmet's outside accountant Ina to co-sign a credit application. According to the terms, if Gourmet defaults, Hill Valley can look to her for payment without first pursuing legal remedies against Gourmet. Tina is

a surety

According to the UCC, a merchant is

all of these choices a person who deals in the goods of kind a person who employees a merchant as a broker, agent, or other intermediary a person who, by occupation, holds himself or herself out as having knowledge and skill

Compared to Chapter 7 and 11 plans, a Chapter 13 plan

allows a debtor to retain possession of his or her assets

Irma delivers her Jeep to be fixed at Kent's Auto Repair. Irma agrees to pay cash. Kent's performs, but Irma does not pay. Kent's keeps the jeep until she pays. This is

an artisan's lien

A contract formed in whole or in part from the conduct of the parties is called

an implied contract

A patent holder who has been violated can seek ________, as well as request damages for royalties and lost profits.

an injunction

Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one year, subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes

an offer and an acceptance

Allen promises to pay Barb, his niece, $5,000 if she obtains her degree at City University, where she is in her third year. Barb graduates. Allen must pay Barb because

barb obtained a degree at city

Which is not a basic requirement for an e-contract?

bargained-for exchange

Courts also may reform contracts when the parties have executed a written

covenant not to compete

Ron borrows funds from Suburban Bank secured by Ron's house. Ron defaults on the debt. The bank's options include:

disposing of the collateral in any commercially reasonable manner

Under Chapter 7, creditors are paid in a certain order of priority. The highest-priority class comprises claims for

domestic support

Steel Mill, Inc., agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is

reformation

Article 2 sets forth the requirements for

sales contracts

Kent tries to start his car with no success. He yells that he will sell the car to anyone for $10. Livy, a passerby, hears Kent's yell. This is not an effective offer because it lacks

serious intent

a ________ is essentially a trademark that is used to distinguish the services (rather than the products) of one person or company from those of another.

service mark

An equitable remedy requiring exactly the performance that was specified in a contract; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique is called

specific performance

When anticipatory repudiation occurs, the nonbreaching party may

suspend performance

To create an enforceable security interest between Mortgage Bank and Nations Property Company with a written security agreement, the agreement must be signed by

the debtor

Rice Corporation offers to sell Sushi Restaurants, Inc., five hundred bushels of rice. Sushi responds, "We agree to buy five hundred bushels only if the rice is Grade A quality." Without more, their contract is formed according to

the new terms of the acceptance

Businesses generally attempt to protect their ________ by having all employees who use the process (or information) agree in their contracts, or in confidentiality agreements, never to divulge it.

trade secrets

A contract entered into by a minor is voidable at the option of the minor.

true

A merchant who deals in goods of the kind sold (or leased), automatically gives rise to an implied warranty of merchantability.

true

Consideration is the value given in return for a promise or performance in a contractual agreement.

true

For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting a fact knows it is not as stated.

true

Privity of contract is the relationship that exists between the promisor and the promisee of a contract.

true

Some business processes can be protected as trade secrets.

true

The United States has signed the Anti-Counterfeiting Trade Agreement (ACTA), an international treaty to combat global counterfeiting and piracy.

true

The automatic stay applies to all or part of the debtor's consumer debt.

true

Phoenix Inc. is a publisher. Phoenix uses a logo featuring a bird rising from a flame to identify its publications. The publications are printed in a unique process that includes a 3-D printer. Phoenix could most likely obtain trademark protection for its:

unique logo

Merchants can satisfy the Statute of Frauds if, after the parties have agreed orally, one of the merchants sends a signed written confirmation to the other merchant

within a reasonable time

A third person who receives an unintentional benefit from a contract even though the contract was not made for that person's benefit is

wrong a third party beneficiary

The transfer of contractual duties to a third party is known as

wrong an assignment

If goods of delivery fail in any respect to conform to the contract, the buyer (or lessee) may accept the goods, reject the entire shipment, or accept part and reject part. This is called the

wrong reasonable standard rule

If the delegation of duties are not performed, then the obligee can sue

wrong the delegatee delegator

A mistake that occurs when both parties to a contract are mistaken about the same material fact is

wrong unilateral