Chapter 7 Quiz

Under common law, the ownership of intellectual property is established by _____. A) title deeds B) use C) tradition D) patent E) registration

use Under common law, ownership is established by use; under code law, ownership is determined by registration.

The _____ is a multi-country agreement that has established a regional patent system that allows any nationality to file a single international application for a European patent. A) Madrid Arrangement B) Paris Convention C) TRIPs Agreement D) Basel Convention E) European Patent Convention

European Patent Convention Two multicountry patent arrangements have streamlined patent procedures in Europe. The first, the Patent Cooperation Treaty (PCT), facilitates the process for application for patents among its member countries. The second, the European Patent Convention (EPC), established a regional patent system allowing any nationality to file a single international application for a European patent.

Which of the following conventions is responsible for the promotion of the protection of intellectual property rights among all the member countries of the UN? The Basel Convention The Madrid Arrangement The Tokyo Agreement The Eurasian Convention The World Intellectual Property Organization

The World Intellectual Property Organization The World Intellectual Property Organization (WIPO) of the United Nations is responsible for the promotion of the protection of intellectual property and for the administration of the various multilateral treaties through cooperation among its member states

The first objective of these laws is to protect American consumers by ensuring that they benefit from products and ideas produced by foreign competitors as well as by domestic competitors. _____ are being discussed in this scenario. A) Incorporation laws B) Intellectual property laws C) Antitrust laws D) Indemnification laws E) Insurance laws

antitrust laws Antitrust enforcement has two purposes in international commerce. The first is to protect American consumers by ensuring that they benefit from products and ideas produced by foreign competitors as well as by domestic competitors. The second purpose of antitrust legislation is to protect American export and investment opportunities against any privately imposed restrictions.

A textile manufacturing company is trying to solve a dispute with one of its raw material suppliers over a breach of contract. After the initial attempts to solve the dispute in a friendly informal manner failed, the companies have approached an international commission to appoint an informed party to act as a referee and make a judgment that both parties will honor. Which of the following dispute resolution methods is being used by the companies in the above scenario? A) Litigation B) Arbitration C) Mediation D) Coercion E) Judicial intervention

arbitration The usual arbitration procedure is for the parties involved to select a disinterested and informed party or parties as referees to determine the merits of the case and make a judgment that both parties agree to honor. Although informal arbitration is workable, most arbitration is conducted under the auspices of one of the more formal domestic and international arbitration groups organized specifically to facilitate the resolution of commercial disputes.

Jimmy's foods, a popular food company in the United States is trying to resolve a dispute with a local company in New Zealand which has been operating under the same name in their country. All the attempts by the company to settle the issue in a friendly manner have failed. The directors at Jimmy's want to retain their trade name in the country and have decided to settle the dispute with the local company by appointing a mediator. They also want the sessions to be private because of the fear of creating a poor public image. Which of the following dispute resolution methods is best suited for the above situation? A) Conciliation B) Prosecution C) Arbitration D) Coercion E) Litigation

conciliation Conciliation is a non-binding agreement between parties to resolve disputes by asking a third party to mediate differences. Unlike arbitration and litigation, conciliation sessions are private, and all conferences between parties and the mediator are confidential; the statements made by the parties may not be disclosed or used as evidence in any subsequent litigation or arbitration.

Which of the following methods is considered most effective while resolving disputes with Chinese business partners? A) Arbitration B) Conciliation C) Coercion D) Litigation E) Criminal suits

conciliation Conciliation is considered especially effective when resolving disputes with Chinese business partners, because they feel less threatened by conciliation than arbitration. The Chinese believe that when a dispute occurs, informal, friendly negotiation should be used first to solve the problem; if that fails, conciliation should be tried.

In settling international commercial transaction disputes, which of the following methods accounts for the majority of settlements? A) Criminal suits B) Conciliation C) Arbitration D) Litigation E) Coercion

conciliation Most disputes that arise in commercial transactions are settled informally. Conciliation (also known as mediation) is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences.

The Islamic law prohibits the payment of _____. A) taxes B) profits C) interest D) equity E) accounting fees

interest Among the unique aspects of Islamic law is the prohibition against the payment of interest. The Islamic law of contracts states that any given transaction should be devoid of riba, which is defined as unlawful advantage by way of excess of deferment, that is, interest or usury.

In code-law countries, the ownership of intellectual property is determined by ____. A) heredity B) nature of use C) duration of usage D) registration E) indemnification

registration Under common law, ownership is established by use; under code law, ownership is determined by registration. In some code-law countries, certain agreements may not be enforceable unless properly notarized or registered.