ch 5 mktg 452

protecting intellectual property

-In the U.S., registration is with the Federal Patent Office -In Europe, applicants use the European Patent Office or register country-by-country -Madrid Protocol trademark owners are protected in 74 countries with 1 application

foreign corrupt practices act

-Requires publicly held companies to institute internal accounting controls that would record all transactions -Makes it a crime for a U.S. corporation to bribe an official of a foreign government or political party to obtain or retain business -Prohibits payments to third parties when there is reason to believe it may be channeled to foreign officials

common law

-disputes are decided by reliance on the authority of past judicial decisions -companies are legally incorporated by state authority -code law is only used in a few areas; ex: the US uniform commercial code, fully adopted by 49 states (Louisiana still influenced by French civil law)

antitrust

-laws are designed to combat restrictive business practices and to encourage competition -enforced by justice department and FTC in the US -fair trade commission in Japan -European Commission in EU

civil law

-legal system reflects the structural concepts and principles of the Roman Empire -companies are formed by contract between two or more parties who are fully liable for the actions of the company

sovereignty and global market integration

-some believe that global market integration is eroding national economic sovereignty -in the EU, individual countries gave up their rights to a national currency, product standards in exchange for better market access

examples of political risk

-war -social unrest -politically motivated violence -international disputes -change in government/pro-business orientation -social conditions -corruption -crime -tax discrimination -repatriation restrictions

European Commission

A proposed merger between two Swiss-based global pharmaceutical companies, Ciba-Geigy AG and Sandoz AG, would be subject to review by regulators from which of the following? A) European Commission B) UN Conference on International Trade Law C) International Chamber of Commerce D) International Court of Justice E) none of the above

trademark

Harley-Davidson has applied for federal protection of an unusual form of intellectual property; the "soul-pleasing rumble" produced by its motorcycles. What type of protection is Harley-Davidson seeking? A) copyright B) trademark C) license D) patent E) trade dress

collaborative consumption

Uber's rapid growth is an example that the ________ is gaining traction. A) digital technology B) collaborative consumption C) ride sharing D) transport convenience E) tourism

OPIC (Overseas Private Investment Corporation).

Various types of political risk insurance to U.S. companies is provided by: A) BERI (Business Environment Risk Intelligence). B) PRS Group. C) EIU (Economist Intelligence Unit). D) WTO (World Trade Organization). E) OPIC (Overseas Private Investment Corporation).

They result in cross-border shopping and smuggling.

What do value added taxes (VAT) encourage in countries such as China? A) They make trademarks and copyrights more valuable. B) They result in cross-border shopping and smuggling. C) They make it harder to bribe officials. D) They protect companies from antitrust scrutiny. E) Global companies refrain from offering bribes.

The plaintiff nation can seek recourse through the UN Security Council.

What happens if a nation has allowed a case against it to be brought before the ICJ (International Court of Justice) and then refuses to accept a judgment against it? A) American Arbitration Association can be sought for justice. B) UN Conference on International Trade Law can be approached. C) International Chamber of Commerce will be another source for seeking justice. D) European Court of Justice can be approached if the country is in the European Union. E) The plaintiff nation can seek recourse through the UN Security Council.

disputes between two nations

What type of international disputes would be taken before the International Court of Justice? A) disputes between two nations B) disputes between two companies C) disputes between a company and a nation D) disputes between a citizen of one country and a company from a different country E) disputes between profit and non-profit organizations

Faced with a financial crisis and a test of his political will, Putin responded by blaming the protestors for Russia's problems.

Which of the following statements does not reflect the changes that have taken place in Russia? A) Russian shoppers spend billions each year on luxury goods, tourism, and foreign real estate. B) Affluent Russians can shop at boutiques that offer Versace, Burberry, Bulgari, and other exclusive brands. C) The Kremlin limits foreign investment in strategic industries such as oil. D) In March 2014, Putin angered the West by annexing Crimea, a region that had been considered part of Ukraine. E) Faced with a financial crisis and a test of his political will, Putin responded by blaming the protestors for Russia's problems.

The Paris Convention protects patents, the Berne Convention protects copyrights.

Which of the following statements is correct? A) The Paris Convention protects patents, the Berne Convention protects copyrights. B) The Paris Convention protects copyrights, the Berne Convention protects patents. C) The Berne Convention and Paris Convention are different names for the same thing. D) Neither the Berne Convention nor the Paris Convention is concerned with intellectual property. E) The International Union for the Protection of Literary and Artistic Property is different from the Berne Convention.

A, B, and C are copyright violations.

Which of the following would constitute a copyright violation? A) manufacturing and selling illegal videocassette copies of "Spiderman 2" B) manufacturing and selling illegal copies of Levi "501" jeans C) printing and selling illegal copies of Harry Potter books D) A, B, and C are copyright violations. E) A and B are copyright violations.

nationalization

a government takes control of some or all of the enterprises in an entire industry -this is acceptable according to international law, if -satisfies a public purpose -includes compensation

intellectual property

must be registered in each country where business is conducted

Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries.

n West Africa, Burkina Faso, the Ivory Coast and Senegal are former French colonies, while Nigeria, Sierra Leone, and Ghana are former British colonies. Based on this information, which of the following would be correct? A) Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria, Sierra Leone, and Ghana are common-law countries. B) Burkina Faso, the Ivory Coast and Senegal are common-law countries, while Nigeria, Sierra Leone, and Ghana are civil-code countries. C) West Africa, the Ivory Coast and Senegal are the only common-law countries. D) All the West African nations mentioned are likely to be civil-code countries. E) All the West African nations mentioned are likely to be common-law countries.

jurisdiction

refers to a court's authority to rule on a particular types of issues arising outside of a nation's borders or to exercise power over individuals or entities from different countries -employees of foreign companies should understand the extent to which they are subject to _______________ of host-country courts -courts have jurisdiction if it can be demonstrated that the company is doing business in the state in which the court sists

political risk

risk of change in political environment or in the government policy that would adversely affect a company's ability to operate effectively and profitably

sovereignty

supreme and independent political authority. it regulates trade, manages the flow of people into and out of its boundaries, and exercise jurisdiction over all persons and property within its territory -has the right, authority and ability to conduct its domestic affairs without outside interference and to use its international power and influence with full discretion

perceived political risk

when _____________ ____________ ______ is high, a country will have a difficult time attracting foreign direct investment

the New York convention

A company stands a better chance of having an international arbitration award upheld if its home-country government has signed: A) the Paris Convention. B) the Prague Convention. C) the New York Convention. D) the Vienna Convention. E) the Geneva Convention.

patent

A formal legal document that gives an inventor the exclusive right to make, use, and sell an invention for a specified period of time is known as a: A) patent. B) copyright. C) trademark. D) trade secret. E) trade dress.

Somalia.

According to Transparency International's Corruption Perceptions Index scores for 2014, the country which was listed as most corrupt was: A) Iraq. B) Uzbekistan. C) Chad. D) Afghanistan. E) Somalia.

confiscation

After Fidel Castro took power in Cuba in 1959, his government seized control of American property without paying compensation. Coca-Cola, DuPont, Texaco, and dozens of other American companies have filed claims against Cuba seeking financial settlements. Which of the following terms most specifically describes the action Castro took against these companies? A) nationalization B) confiscation C) expropriation D) internationalization E) deportation

Uber is considered as an "information-society service" in 250 cities where it operates.

All of the following statements are true regarding services provided by Uber except: A) in Brussels, a court fines drivers who use the service B) in London and other major cities, drivers have staged demonstrations claiming unfair competition. C) regulators in Germany succeeded in obtaining a temporary injunction banning the service. D) Uber was banned in the Delhi region after a driver was accused of sexually assaulting a female passenger. E) Uber is considered as an "information-society service" in 250 cities where it operates.

omnibus trade and competitiveness act

Allows for "grease" payments to cut red tape; i.e., getting shipments through customs, getting permits

political culture

Any company doing business outside the home country should first carefully study the ________ in the target country. A) political culture B) nationalization C) political risk D) jurisdiction E) sovereignty

islamic law

Any western country doing business in Malaysia or the Middle East should have an understanding of: A) the French Civil Code. B) Anglo-Saxon common law. C) Islamic law. D) the Uniform Commercial Code. E) Roman law and the Napoleonic Code.

patent

Engineers at a company in a developing country study an American computer chip design, copy it, and produce identical chips that are then sold to local computer makers. What form of intellectual property has been wrongly appropriated? A) patent B) copyright C) trademark D) trade secrets E) technological

antitrust

As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set air fare prices jointly and coordinate flight schedules. Normally, such behavior would be considered harmful to competition, but the U.S. government has granted the two airlines special exemptions from laws concerning: A) intellectual property. B) antitrust. C) jurisdiction. D) licensing. E) arbitration.

EIU (Economist Intelligence Unit)

Bureaucracy is listed as a political risk category by: A) BERI (Business Environment Risk Intelligence). B) PRS Group. C) EIU (Economist Intelligence Unit). D) WTO (World Trade Organization). E) OPIC (Overseas Private Investment Corporation).

political turmoil

Categories of political risk listed by EIU (Economist Intelligence Unit) include all of the following except: A) war. B) political turmoil. C) bureaucracy. D) corruption. E) crime.

corporate taxation

Companies attempt to limit tax liability by shifting location of income

products very similar to those made by U.S. companies can be patented without fear of infringement.

Companies such as Caterpillar have been unable to protect critical innovations in Japan because:. A) products very similar to those made by U.S. companies can be patented without fear of infringement. B) the Japanese government enforces strict control over infringement rights for security reasons. C) inventions that are based on software can be easily downloaded. D) U.S. patent laws now harmonize with those in the EU as well as Japan. E) patents in Japan are broader than those in the United States.

The European Commission ruled that German Grundig was in violation of the laws of the Common Market.

Consten, a French company, had exclusive rights to import and distribute German Grundig's electronic products into France. One of the competitors started bringing "parallel imports" into France illegally, importing Grundig product bought from a foreign supplier. Which of the following does not represent an action taken by different legal bodies? A) Consten's complaint was upheld by two French courts. B) The Paris Court of Appeals suspended the judgment of the French courts. C) The Paris Court of Appeal's judgment was based on pending a ruling by the European Commission. D) The European Commission ruled against Consten on the grounds that territorial protection proved to be damaging to the Common Market. E) The European Commission ruled that German Grundig was in violation of the laws of the Common Market.

the unauthorized copying or production of a product

Counterfeiting is: A) the use of a formal legal document for illegal purposes. B) the ownership of a written, recorded, performed or filmed creative work. C) the unauthorized copying or production of a product. D) the use of a product name that has different meaning than the original brand. E) the use of a distinctive mark of a brand that is no longer producing the original brand.

political culture

Despite the positive publicity, the phrases used to describe the arbitrary exercise of state power in Russia include all of the following except: A) state capitalism. B) political culture. C) renationalization. D) kleptocracy. E) managed democracy.

misuse of place names by marketers of wine products that do not originate in those places.

In 2005, representatives from several wine regions in the United States and the EU signed a Joint Declaration to Protect Wine Place & Origin. In addition, a Wine Accord signed by the United States and EU bans the: A) use of alcohol in public places. B) purchase of wine from country of origin. C) misuse of place names by marketers of wine products that do not originate in those places. D) misuse of labels which does not include the origin of ingredients. E) use of word "champagne" on wine made in the United States.

jurisdiction

In a recent case, Revlon sued United Overseas Limited (UOL) in the U.S. District Court for the Southern District of New York for breach of contract. UOL countered by asking the court to dismiss the claim since they are not operating in that area. Revlon cited the presence of a UOL sign above the entrance to the offices of a New York company in which UOL had a 50-percent ownership. The court dismissed UOL's claim. This is an issue related to : A) jurisdiction. B) antitrust. C) dilution of equity. D) bribery and corruption. E) intellectual property.

20

In accordance with GATT, new U.S. patents are granted for a period of ________ years from the filing date. A) 10 B) 17 C) 20 D) 27 E) 30

coyright

In many parts of the world, sales of unauthorized videos of Hollywood movies cost the movie studios billions of dollars. When illegal copies of movies are made, what form of intellectual property has been wrongly appropriated? A) patent B) copyright C) trademark D) trade secrets E) down loading

the Sherman act of 1890

Prohibits certain restrictive business practices including fixing prices, limiting production, allocating markets, or any other scheme designed to limit or avoid competition. Law applies to U.S. companies outside U.S. borders and to foreign companies operating in the U.S.

the koran

Islamic law is a comprehensive code based in part on: A) Anglo-Saxon common law. B) Roman law and the Napoleonic Code. C) the Uniform Commercial Code. D) the Koran. E) the French Civil Code.

at least four stages of production should occur in Italy for the product to be labeled as "Made in Italy."

Italy recently introduced the Reguzzoni-Versace Law which is intended to regulate trade in textiles, leather, and footwear. All of the following statements pertaining to the law are correct except: A) at least four stages of production should occur in Italy for the product to be labeled as "Made in Italy." B) the countries in which the remaining production stages took place must be identified. C) Brussels objected on grounds that the law conflicts with restrictions provided by the European Union. D) EU regulators view the law as "protectionist." E) the law is more stringent than the existing laws where only one production stage has to occur in the country of origin.

united nations

Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the: A) United States. B) European Union. C) United Nations. D) Netherlands. E) United Kingdom.

sets prices, controls output, or takes other actions to maximize profits.

OPEC can be considered as a "cartel" which is a group of separate companies that collectively: A) sets prices, controls output, or takes other actions to maximize profits. B) dictates how other countries should use their products. C) produces more products in order to beat the competition. D) conducts activities that are considered illegal in the United States. E) works on forming a union against management of other companies.

governments use strict control for security reasons.

Research in Motion (RIM), a Canadian company which markets BlackBerry Messenger, is very popular with politicians and business people because it offers advance encryption that provides data security. This can be a disadvantage for some countries because: A) it is too complex to understand. B) governments use strict control for security reasons. C) the software can be easily downloaded. D) the accessibility is very poor. E) there is competition from local manufacturers.

it can refer serious matters to the UN Security Council.

The European Commission has jurisdiction over European-based companies as well as non-European ones that generate significant revenues in Europe. If Microsoft applies in Europe, the Commission has a right to all of the following except: A) it can block a proposed merger. B) it can block a proposed joint venture. C) it can approve with minor modifications. D) it can demand substantial concessions before granting approval. E) it can refer serious matters to the UN Security Council.

Scandinavia.

The German civil-law tradition prevails in all of the following countries except: A) Poland. B) Hungary. C) Czech Republic. D) Scandinavia. E) Germany.

the exclusive nature of the license agreement.

The U.S. Justice Department objected to a recent patent license agreement between S.C. Johnson & Sons and Bayer AG. The antitrust unit at the Justice department objected to: A) the duration of the license. B) the amount of royalties Johnson agreed to pay. C) Bayer's attempts to circumvent FDA policies. D) the exclusive nature of the license agreement. E) the hostile arrangement between Bayer and Johnson.

Louisiana

The Uniform Commercial Code (UCC) is fully adopted by all U.S. states except: A) Virginia. B) North Dakota. C) Wisconsin. D) Louisiana. E) Montana.

the low-context nature of the American culture.

The United States has more lawyers than any other country in the world and is arguably the most litigious nation on earth. This is a reflection of: A) the lack of class action lawsuits. B) the low-context nature of the American culture. C) the lack of spirit of confrontational competitiveness. D) the fact that lawyers cannot undertake cases on contingency fee basis. E) the fact that conflicts arise more in the United States.

IBM

The company receiving the most U.S. patents in 2013 was: A) Samsung Electronics. B) IBM. C) Microsoft. D) Canon. E) Panasonic.

fines imposed on individuals can be paid by their employer or principal.

The following criminal penalties may be imposed for violations of the FCPA'S (Foreign Corrupt Practices Act) antibribery provisions except: A) corporations are subject to a fine of up to $2,000,000. B) officers, directors, stockholders, employees, and agents are subject to a fine of up to $100,000. C) fines imposed on individuals can be paid by their employer or principal. D) the fines may be much higher, up to twice the benefit sought by the defendant. E) in addition to fines, there may be imprisonment for up to five years.

expropriation

The governmental action to dispossess a foreign company or investor is known as: A) compensation. B) confiscation. C) expropriation. D) internationalization. E) nationalization.

excessively high taxes on business operations

The high level of political risk currently evident in Russia can be attributed in part to: A) changing of name of the country. B) changing the national flag. C) excessive loans from the International Monetary Fund (IMF). D) participation in the WTO (World Trade Organization). E) excessively high taxes on business operations.

piracy

The unauthorized publication or reproduction of copyrighted work is referred to as: A) associative counterfeit. B) imitation. C) mistake. D) trade secrets. E) piracy.

to have a product that is clearly superior to that of the competition.

When companies operate abroad in the absence of home-country legal constraints, the best choice for ethical conduct would be: A) to ignore bribery and act as if it does not exist. B) to maintain home-country ethics worldwide with no adaptations. C) to abandon any attempt to maintain company ethics. D) to have a product that is clearly superior to that of the competition. E) to adapt in varying degrees to local customs and practices.

merger of Sony Music (Japan) and BMG (Germany)

Which of the following actions were approved both by the Antitrust Review in the EU as well as in the United States? A) acquisition of Honeywell (U.S.) by GE (U.S.) B) joint venture between music businesses of EMI group (Great Britain) and Time Warner (U.S.) C) merger of Sony Music (Japan) and BMG (Germany) D) merger of WorldCom (U.S.) and MCI (U.S.) E) British Airways (U.K.) and American Airlines (U.S.)

Trade secrets are protected by state law, while patents and copyrights are protected by federal statutes.

Which of the following best describes the legal basis for protection of trade secrets, patents, and copyrights in the United States? A) Trade secrets, patents, and copyrights are protected by federal statutes. B) Trade secrets, patents, and copyrights are protected by state law. C) Trade secrets are protected by state law, while patents and copyrights are protected by federal statutes. D) Trade secrets are protected by federal statutes, while patents and copyrights are protected by state law. E) Trade secrets, patents, and copyrights are not protected by any laws.

Copyright laws protect the actual code, while patent laws protect the idea.

Which of the following is true about protection of computer software? A) Copyright laws protect both the actual code and the idea embodied in the code. B) Patent laws protect both the actual code and the idea embodied in the code. C) Patent laws protect the actual code, while copyright laws protect the idea. D) Copyright laws protect the actual code, while patent laws protect the idea. E) License protects both the actual code and the idea embodied in the code.

Patents are valid for 20 years after the filing date of the application

Which of the following is true about revised U.S. patent laws? A) Patents are valid for 17 years after the patent is granted. B) Patents are valid for 17 years after the patent is filed. C) Patents are valid for 20 years after the patent is granted. D) Patents are valid for 20 years after the filing date of the application. E) Patents are valid as long as the product is manufactured.

all of the above

Which of the following is true of the arbitration framework created by the New York Convention? A) Signatory countries can require parties to an arbitration agreement to actually use arbitration. B) Signatory countries recognize and can enforce arbitration judgments. C) There are limited grounds for appealing arbitration decisions. D) The grounds that are recognized are different than the typical appeals that are permitted in a court of law. E) all of the above

trade secrets

are confidential information or knowledge that has commercial value and is not in the public domain and for which steps have been taken to keep it secret

high taxation

can lead to black market growth and cross-border shopping

trademark

distinctive mark, motto or emblem to distinguish it from competing products

copyright

establishes ownership of a written, recorded, performed or filmed creative work

patent

gives an inventor exclusive right to make, use and sell an invention for a specified amount of time

expropriation

government action to dispossess a foreign company or investor -compensation should be provided in a "prompt, effective, and adequate manner"

high excise and VAT taxes.

in Great Britain, the Wine and Spirit Association estimates that, on average, cars returning from France are loaded with 80 bottles of wine. This is most likely due to A) trademarks and copyrights violation. B) cross-border smuggling. C) bribes accepted by officers. D) antitrust scrutiny. E) high excise and VAT taxes.

licensing

is a contractual agreement in which a licensor allows a licensee to use patents, trademarks, trade secrets, technology, and other intangible assets in return for royalty payments or other forms of compensation

confiscation

occurs when no compensation is provided

counterfeiting

unauthorized copying and production of a product

piracy

unauthorized publication or reproduction of copyrighted work