Legal

Chase received a magazine in the mail that he did not order. He was surprised, but read and enjoyed the magazine. A month later, another copy arrived, along with a bill for $25 to cover the subscription. Which of the following applies to this situation? a) Chase does not have to pay for the magazine, even if the company continues to send it to him. b) Chase must notify the magazine whether or not he wants to continue receiving the magazine within 30 days. c) Chase needs to return the two copies of the magazine he received to show that he is not interested. d) Chase must pay the bill because the magazine company is entitled to be paid for sending out subscriptions.

A

For an original work of authorship, such as a book, song, poem, article, recording, or other work, an author would seek the protection of a: a) copyright. b) trademark. c) trade secret. d) patent.

A

A trademark lasts for a) 20 years after the application is filed. b) 10 years, but it can be renewed for an unlimited number of terms as long as it is used. c) 70 years after the death of the creator. d) as long as it is kept confidential.

B

The agency that oversees the credit practices of banks, mortgage lenders, and credit card companies is called the: a) Federal Banking Investigation. b) Consumer Financial Protection Bureau c) Consumer Investigation Agency. d) Financial Regulation Bureau.

B

A door-to-door salesperson knocks on Mary's door and convinces her to purchase the Wonder Vacuum for $500. Soon after the salesperson leaves, Mary begins to have second thoughts about the transaction. Which statement about the situation is correct? a) Mary agreed to purchase the vacuum, so she must honor the agreement. b) Mary can keep the vacuum without paying when it is delivered, as it was purchased in her home. c) Mary can cancel the transaction at any time before midnight of the third business day thereafter. d) Mary must pay for the vacuum, but she can get a refund if she returns it to the manufacturer within 30 days.

C

The bank who lends money in exchange for a mortgage on the borrower's house is considered to be the a) mortgagor. b) profitor. c) mortgagee. d) profitee.

C

A business using a word, phrase, symbol, or design to identify and distinguish its brand of goods would protect that branding with a: a) patent. b) trade secret. c) copyright. d) trademark.

D

A business will be able to protect its trademark for how long? a) 20 years from the date of registration of the trademark b) as long as the registration is renewed every 70 years c) forever, whether or not it is in use d) if unregistered, as long as it is in use

D

A nonpossessory interest in land owned by another that entitles its holder to a specific limited use of the land is called: a) leasehold. b) a zone. c) adverse possession. d) an easement.

D

The difference between an inter vivos gift and a gift causa mortis is that the inter vivos gift is made during the donor's lifetime and a gift causa mortis is a gift made after the donor's lifetime by the donor's estate. True False

F

A design patent protects the appearance of an item and is valid for 14 years. True False

T

If a trademarked name acquires a generic meaning, the owner of the trademark loses protection. True False

T

In many states today a landlord must use reasonable care to maintain safe premises and is liable for foreseeable harm. True False

T

Juan has the right to walk (or drive) across his neighbor's property to reach the highway. Juan's right is referred to as an easement, which allows use of the land. True False

T

Landlords have the right, and may have a duty, to evict tenants who seriously disturb others. True False

T

The implied warranty of habitability requires that a landlord meet all standards set by the local building code, or that the premises be fit for human habitation. True False

T

Signing an 18-month lease on a two-bedroom townhouse with a monthly rent of $900 creates a: a) fixed-term tenancy. b) periodic tenancy. c) tenancy at will. d) tenancy by the entirety.

A

To prevent others from making, selling, or using an invention, an inventor should seek what type of intellectual property protection? a) trademark protection b) copyright protection c) trade secrets protection d) patent protection

D

John loans George money, and they sign a written agreement whereby George will repay John in monthly installments. Is this loan subject to the Truth in Lending Act? a) Yes, if John and George live in different states. b) No, if John and George are related. c) Yes, if the loan is for more than $1,000. d) No, if John is not in the business of offering credit.

D

Which of the following consumer credit acts examines lenders' practices regarding race, religion, national origin, color, gender, marital status, or age? a) Fair Credit Reporting Act (FCRA b) Fair Credit Reporting Act (FCRA c) Fair Debt Collection Practices Act (FDCPA) d) Correct answer.Equal Credit Opportunity Act (ECOA)

D

A copyright is valid for 28 years after it is obtained and can be renewed for another 28 years. True False

F

The earliest international agreement that provided copyright protections among the signatories to the agreement was the: a) Berne Convention. b) Trade-Related Aspects of Intellectual Property Rights Agreement. c) Madrid Protocol. d) Anti-Counterfeiting Trade Agreement

A

An author may expect to receive copyright protection for the life of the author plus: a) 10 years. b) 70 years. c) 50 years. d) 20 years

B

Property that has been voluntarily placed somewhere by the owner and then inadvertently forgotten is: a) treasure trove. b) mislaid. c) abandoned. d) lost.

B

The Supreme Court has held that parody of copyrighted material is a violation of copyright law. True False

F

Paul and Diana are married and own a home. Both of their names are on the mortgage. This is an example of a a) concurrent estate. b) tenancy at will. c) tenancy in kind. d) shared estate.

A

Mabel is a single 40-year-old who has borrowed money on numerous occasions. Her payment record has been good, except she has been delinquent in paying a few bills. Which of the following is true regarding credit information gathered on Mabel? a) Since Mabel has been delinquent, she waives her right to see the credit files. b) If Mabel is rejected for a loan because of the consumer report, the lender must tell her the source of the report. c) Mabel's only legal remedy, if there is erroneous information in her credit file, is to report the problem to the FTC for enforcement. d) Mabel has a right to have the information regarding her delinquency in paying a few loans stricken from her credit record because her record has generally been good.

B

The maximum rate of interest for credit transactions is established by a) the Federal Reserve Board. b) state law. c) the FTC. d) federal law.

B

Which of the following types of intellectual property may only be owned by a business? a) a patent b) a trademark c) a trade secret d) a copyright

C

The issue in the POM Wonderful, LLC v. FTC case involved a) violation of the Fair Debt Collection Act. b) the type of evidence necessary to support health claims in advertisements. c) the legality of the Consumer Product Safety Act of 1972. d) violation of the Magnuson-Moss Warranty Act.

B

A person in her last days with a terminal illness tells her friend that he can have her car when she dies. This type of gift is called a: a) gift causa vivos. b) gift extra mortis. c) gift inter vivos. d) gift causa mortis.

D

Which of the following is an example of a fixture? a) a television that is attached to a wall bracket b) a child's swingset that is in the backyard of a house c) a refrigerator in the kitchen of a house d) cabinets attached to the wall of a garage

D

Methods for transferring title to real estate include: a) by sale, through a will, by default, and through adverse possession. b) by sale, by gift, through a will, through adverse possession, and through eminent domain. c) by sale, by gift, by theft, and through eminent domain. d) by sale, by gift, through a will, through bankruptcy, and through eminent domain.

B

Beth owned an original U.S. flag. She had previously loaned the flag to Ross, a lawyer, so that he could display the flag on the wall behind his office desk. One day while visiting Ross in his office and admiring the flag, Beth said to Ross, "You are so fond of that flag, I would like you to have it!" Ross responded with a gracious "thank you." In this situation a) Beth has not made a valid, binding gift of the flag because gifts are never binding and can always be revoked by the donor. b) Beth has made a valid, binding gift if Beth agreed to give the flag in exchange for Ross's legal services. c) Beth has not made a valid, binding gift of the flag because the donor must deliver the property to the donee, which was not done here. d) Beth has made a valid, binding gift because she intended to transfer present ownership to Ross and Ross accepted the flag.

D

One of the key purposes of the Digital Millennium Copyright Act (DMCA) is: a) to hold internet service providers accountable for digital copyright infringement by their users. b) to bring copyright laws into the digital age by regulating digital media copyright infringement c) to provide an easier method of filing copyright registrations on digital media. d) to require foreign signatories to the DMCA to enforce digital copyright infringement.

B

Suppose Bill's credit card is stolen and he notifies his credit card company of this fact. Which of the following is true regarding the amount of unauthorized charges made before Bill notified his credit card company? a) Bill is responsible for half of the unauthorized charges. b) Bill is responsible for the first $50 of unauthorized charges. c) Bill is responsible for the first $100 of unauthorized charges. d) Bill is not responsible for any of the unauthorized charges.

B

What is the best definition of a trade secret? a) The right of an inventor to prevent others from making, using, or selling his inventions for a limited time. b) A formula, device, process, method, or compilation of information that, when used in business, gives the owner an advantage over competitors. c) The right of a creator to exclusively reproduce, distribute, and perform her work for a limited time. d) Any combination of words and symbols that a business uses to identify its products or services and distinguish them from others.

B

When a product is advertised for sale at a greatly reduced price, but the salesperson tries to get customers to buy a more expensive item instead, this is called: a) substitution deception. b) bait and switch. c) rain check. d) sleight of hand.

B

Which of the following consumer credit acts helps potential borrowers understand the cost of a loan? a) Equal Credit Opportunity Act (ECOA) b) Truth-in-Lending Act (TILA) c) Fair Credit Reporting Act (FCRA) d) Fair Debt Collection Practices Act (FDCPA)

B

Which of the following types of intellectual property protection usually has a set term of 20 years? a) trademark b) patent c) copyright d) trade secret

B

Hanna intends to give her granddaughter, Melodee, her antique hat pin. This heirloom has been kept under lock and key in the wall vault in the library of Hanna's house in Virginia. The hat pin is currently the only item in the vault. When Hanna is visiting Melodee in Connecticut, Hanna gives Melodee the only key to the vault. Melodee is grateful for the present and excitedly accepts. In this situation has there been a completed gift? a) Yes. There has been physical delivery of the hat pin. b) No. There has been no physical delivery of the hat pin. c) Yes. There has been constructive delivery of the hat pin. d) No. There has only been constructive delivery of the hat pin.

C

Monic, a college professor, makes 30 photocopies of a magazine article and passes the article out to her students. The students are assigned to read the article and write an opinion paper about it. Has Monic violated copyright law? a) Yes. Though educators have a right under the "fair use doctrine" to make limited use of copyrighted materials, Monic violated the law when she made photocopies of an entire article and distributed them to her students. b) No, as up to 50 photocopies of articles are always permissible. c) No. Monic has acted within the fair use doctrine. d) Yes. Though the author will probably not enforce his or her rights under this situation, Monic has technically violated federal copyright law.

C

Sandy noticed an unauthorized electronic funds withdrawal on her bank statement. In order for her to not be liable for the withdrawal, she must notify her bank within _______ of the date of the bank statement. a) 10 days b) 30 days c) 60 days d) 90 days

C

A company's trade secret lasts for a) 70 years after the death of the creator. b) 20 years after the application is filed. c) 10 years, but it can be renewed for an unlimited number of terms as long as it is used. d) as long as it is kept confidential.

D