BLR235WI Megaquizlet pt3

John Crichton had applied for a trademark logo at the U.S. Patent and Trademark Office for his new startup company, stating that he would use the logo in commerce within the next six months. But even after six months, he had not yet used the logo. Which of the following recourses does trademark law allow John Crichton so that he can retain his logo until he uses it in commerce?

Apply for a six-month extension for the logo.

Silly Seats sells 100 whoopee cushions to Marketing Genius, Inc. Marketing is planning on putting them into some chairs being manufactured by Chairs 'R Us and delivered when the chairs are complete to Marketing Genius. Marketing Genius will then sell the chairs. The invoice sent by Silly Seats says, "FOB Chairs 'R Us". The whoopee cushions are destroyed by a fire at Chairs 'R Us.Does the loss fall on the seller or the buyer and why?

Buyer, because the loss occurred after the FOB point.

Elephant, Inc. ordered 10,000 stuffed elephants from ToyMaker, LLC. Elephant's invoice said the toys were to be delivered to its office location. ToyMaker's invoice said that the toys would be available for pickup at its location and it was not responsible for shipment. Elephant calls ToyMaker and asks when the toys will be shipped and when ToyMaker refuses to ship the toys, arranges for their pickup with FedEx. Elephant sued ToyMaker for the costs of shipment.Who is responsible for getting the toys to Elephant?

Elephant because if the parties do not do not agree if the product is to be delivered or not, then it is not delivered and the buyer must arrange for transportation.

Mid-west Manufacturing sells Blue Imports 1,000 windows. The windows are picked up by Fira Transportation and delivered to Blue's warehouse. While enroute to Blue, the windows are destroyed.What is the FOB point and how do you know?

FOB buyer because it does not say and therefore the UCC term controls.?

Agency.Gilbert. FIRST.Laurel Creek Health Care Center v. Bishop, 2010 WI. 985299 (Wisconsin state court,2010).Gilbert Bishop was admitted to Laurel Creek Health Care Center. (1) He told several agents and employees of Laurel Creek that he was physically incapable of signing admission documents but was of sound mental capacity and wanted his wife, Anna, to sign the documents on his behalf. Anna did so. The contract between Mr. Bishop and Laurel Creek contained a provision for mandatory arbitration. While at the hospital, Gilbert died. His brother and executor, Colson Bishop, filed a lawsuit in a Kentucky state court against Laurel Creek for negligence. Laurel Creek asked the court to order the parties to proceed to arbitration. The court denied the request. Laurel Creek appealed. Three steps are needed to create an agency relationship. (2) First., "the principal manifests assent to be affected by the agent's action. Second, the agent's actions establish the agent's consent to act on the principal's behalf. Third, by acting within such authority, the agent affects the principal's legal relations with third parties. Clearly here, Anna's actions affected Gilbert's relations with Laurel Creek, a third party."(2) Here the first step, "the principal manifests assent to be affected by the agent's action is satisfied. (3) In the instant case, Gilbert asked that Anna come to the hospital to sign the papers for him which shows he, as the principal manifested asset for Anna to be his agent. The second step, agent accepts the job, is established because Anna signed all the admissions papers per her husband's request and therefore consented to act on Gilbert's behalf. Third, the agent affects the principal's legal relations with third parties, is shown because clearly here, Anna's actions affected Gilbert's relations with Laurel Creek, a third party."Anna was Gilbert's agent and therefore the agreement signed by Anna stands. The parties are ordered to mandatory arbitration per the contract.QUESTION: The sentence labeled (1) above and starting with "He indicated." is which of the following?

Fact?

A party has to be a member of an organization to use a certification mark.

False

A party that does not register its brand name has no legal right over it.

False

A shipment contract requires the seller to deliver goods to a destination specified in the sales contract.

False

Distinctive marks are ordinary words or symbols that have acquired special meaning with a product or service.

False

In a lease transaction, title to the leased goods passes to the lessee.

False

Price fixing is a rule of reason violation of Section 1 of the Sherman Act.

False

The FTC Act can be used to recover treble damages.

False

The antitrust laws were enacted to promote anticompetitive behavior in commerce and industry.

False

The fair use doctrine for copyrights does not allow reproduction of a work in a legislative or judicial proceeding.

False

If a document of title is required, title must pass when and where the seller delivers the goods to the buyer.

False*

Group boycotts can be either a per se violation or rule of reason violation.

False?

In a certificate of deposit, the depositor is the payee.

False?

Noerr doctrine is guaranteed by the Bill of Rights.

False?

Restraints that are not characterized as per se violations are not further examined using the rule of reason.

False?

The UCC allows the title of goods to be passed without its identification.

False?

The real owner cannot reclaim goods from a good faith purchaser.

False?

Treble damages are allowed in an FTC Act violation.

False?

Treble damages cannot be sought by the government for the violation of antitrust laws.

False?

Which of the following is a difference between a sale or return contract and a sale on approval contract?

For sale or return, the risk of loss is borne by the buyer; while in a sale on approval, it is borne by the seller.

Which of the following accurately describes the fair use doctrine with reference to copyrighted material?

It permits certain limited use of a copyright by someone other than the copyright holder without the permission of the copyright holder.

Steve brings his watch to Knell Watches to be repaired. Knell Watches sells and repairs watches. Steve entrusts his watch at Knell's until it is repaired. The watch store repairs the watch, but then sells it to Kevin, who buys the watch with a fraudulent check that bounced. Kevin then resells the watch to his friend Jonathan, who is unaware of the stolen nature of the watch. Who can legally claim ownership over the watch in court?

Jonathan

Microdot Corporation has a "Purchasing Director" who is authorized to make all purchases over $1,000 for the company. Derrick is the Purchasing Director. Derrick signs, with the words "Microdot Purchasing Director" under his name, a contract to buy $10,000 worth of office furniture from Office Mart, Inc., to be delivered 6 months from the date of the contract.What entity purchased the office furniture?

Microdot

Kern Bakery ordered printed, cellophane wrapping for its product (cookies) from R-P Packaging, Inc. The invoice accompanying the wrapping stated that in the event of a dispute regarding the wrapping the parties agreed to binding arbitration. Three days after receiving the invoice, Kern faxed a letter to R-P stating that it did not agree to binding arbitration. A dispute later arose when Kern claimed the printing was not centered.Is Kern required to arbitrate?

No, agreements to arbitrate are considered material.

In December, Brown orally agrees to sell his farm to his cousin Gray for $150,000, sale to take place in April. The parties do not enter into a written contract.At Christmas Brown sends out Christmas cards to his family that include a letter which says, "I am so glad that Gray is buying the farm because now it will stay in the family." Signed, Brown.However, in January, Mega Corporation offers Brown $200,000 for his farm.Is Brown legally obligated to sell the farm to Gray? (quiz 2) a.Yes, the law does not require a writing for the sale of real estate. b.Yes, signed written evidence of the contract exists. c.No, a written contract is required for the sale of land. d.No, contracts for the sale of land must be in writing.

No, contracts for the sale of land must be in writing.*

Which of the following is true with regard to price fixing?

Price fixing also involves fixing the quantity of a product or service to be produced or provided.

Jason orders one hundred remote-controlled toy cars from RyBy Toys. In the contract, it is stipulated that RyBy Toys will transport the toy cars via FlyByNight, a national carrier service. RyBy Toys makes the arrangements and hands over the toys to FlyByNight without the remote-controllers. In the event that the goods are destroyed in transit, which of the following parties would bear the risk of loss as per the sales contract?

RyBy Toys would bear the risk as they shipped nonconforming goods.

The ________ is a federal statute, enacted in 1890, that makes certain restraints of trade and monopolistic acts illegal.

Sherman Act

Steve brings his watch to Knell Watches to be repaired. Knell Watches sells and repairs watches. Steve entrusts his watch at Knell's until it is repaired. The watch store repairs the watch, but then sells it to Kevin, who buys the watch with a fraudulent check that bounced. Kevin then resells the watch to his friend Jonathan, who is unaware of the stolen nature of the watch. According to the entrustment rule, what legal recourse does Steve have to reclaim the watch or collect damages?

Steve can sue Knell Watches for damages

20 fishermen agreed to work for $50/day starting 6/1 on a fishing vessel and signed an agreement dated 2/1.When the fishermen arrived at the harbor on 6/1, they refused to work unless the owner agreed to pay them $75/day. The owner agreed and signed a "modification" on 6/1 stating he would pay the fisherman $75/day. However, after the season the owner paid according to the 2/1 contract, not the 6/1 modification.Which of the following statements is true?

The owner wins because the 6/1 'modification is not supported by consideration and is not a contract.

Kenneth purchased a car from his local dealership, Quartent Cars. However, since the car was not available in the color that Kenneth favored, the sales contract stipulated that Kenneth could immediately pick up the car of his preferred color from a nearby warehouse. The warehouse was owned by Mr. Henderson. Kenneth received the document of title for the car upon payment and presented it to Mr. Henderson a week later. But Mr. Henderson informed Kenneth that the car was damaged during a fire at the warehouse. If Mr. Henderson had refused the document of title provided by Kenneth, who would have borne the risk of loss to the car?

The risk would have to be borne by Quartent Cars

Which of the following is true of a contract with the no-arrival, no-sale term?

The seller does not have to deliver replacement goods to the buyer in case of damages.

Which of the following is true of a destination contract containing a "no-arrival, no-sale" clause?

The seller is required to bear the expense and risk during transportation.

TREECE #1: Treece appeared before the State Gambling Commission at his hearing to obtain a license to sell punchboards. Punchboards are similar to scratch off lottery tickets and are sometimes sold at places like the Elks or other organizations to raise money.At the hearing he said, "I'll pay $100,000 to anyone who finds a crooked board. If they find it, I will pay it." A reporter happened to be at the hearing and reported the above on television. Barnes saw the news story on television. He had obtained 2 fraudulent punchboards years ago. He presented them to Treece and demanded $100,000. Treece refused to pay the $100,000. [from Barnes v. Treece, 549 P.2d. 1142 (Wash.App. 1976)].Which of the following statements is true with regard to Treece's statement "I'll pay...."?

The statement is not an offer

Which of the following is true for the passage of title in a contract requiring a document of title?

The title passes when the destination of delivery is first mentioned in the contract.

Which of the following is a provision made under the Berne Convention?

The treaty eliminates the need to place the copyright symbol or the word "copyright" on a copyrighted work.

A competitor can lawfully discover a trade secret by performing reverse engineering.

True

A promissory note may only be a two-party instrument.

True

A seller has voidable title interest to goods if he or she obtained the goods through fraud.

True

Bingo, Inc., the seller ships bingo games to Habit, LLC, the buyer, FOB Santa's Workshop Warehouse. The goods are destroyed after arriving at Santa's Workhouse. Habit bears the loss.

True

If an invention is obvious, then it does not qualify for a patent.

True

In a case in which a buyer purchases goods from a thief who has stolen them, the purchaser does not acquire title to the goods.

True

In a sale on approval, the risk of loss and title to the goods remain with seller until the buyer's acceptance.

True

In a sale on approval, there is no sale unless and until the buyer accepts the goods.

True

Predatory pricing has been held to violate Section 2 of the Sherman Act.

True

The Federal Trade Commission and the Department of Justice share the power to enforce the FTC Act.

True

The Sherman Act is the only major antitrust act that includes criminal sanctions.

True

The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act is examined by using the rule of reason.

True

The merger of two grocery store chains that serve the same geographical market is an example of a horizontal merger.

True

The primary benefit of a negotiable instrument is that it can be used as a substitute for money.

True

The unfair advantage theory is intended to prevent wealthy companies from overwhelming the competition in a given market.

True

Trade names or assumed names cannot be used for signing negotiable instruments.

True

Section 2 of the Sherman Act prohibits the act of monopolization.

True*

According to the failing company doctrine, two or more smaller companies are allowed to merge to compete with a larger company even if they are highly profitable as smaller companies.

True?

Antitrust defendants often opt to settle government-brought antitrust actions by entering a plea of nolo contendere.

True?

If no document of title is required, title only passes at the time and place of delivery.

True?

If someone says, "My legal rights have been denied" they must be talking about a constitutional law issue.

True?

In a destination contract, the seller is required to replace any goods lost in transit.

True?

In a no-arrival, no-sale contract, the seller is not required to deliver replacement goods to the buyer.

True?

________ is a restraint of trade in which a seller refuses to sell one product to a customer unless the customer agrees to purchase a second product from the seller.

Tying arrangement

Agency.Gilbert. Same passage as above. What is the value issue raised in the case?

Was Anna Gilbert's agent?

Agency.Gilbert. Same passage as above. What is the legal issue raised in the case?

What does the law say about how someone becomes an agent?

Which of the following must a promissory note contain to make it negotiable?

an implied promise to pay

A holder of goods who is not a seller or a buyer is referred to as a(n) ________.

bailee

A fundamental requirement for a negotiable instrument is that it must ________. be secured with collateral contain a drawer, drawee, and a payee be in a permanent state be supplemented with interest upon payment

be in a permanent state?

Steve finds a wallet outside of the Wal-Mart in Mt. Pleasant. Steve __________________. (quiz) a.must post the find on the Michigan Lost Property website. b.can keep the wallet if no one in the area says it belongs to them. c.is required to turn it over to the police or the store. d.can donate the wallet to charity.

can keep the wallet if no one in the area says it belongs to them?

A ________ is a distinct form of draft drawn on a financial institution and payable on demand.

check

Which of the following is an example of a horizontal restraint of trade?

division of markets

In an F.O.B. place of destination, the buyer has to bear the expense and risk of loss until the goods are tendered at the place of destination.

false

A merger between two or more companies that compete in the same business and geographical market is known as ________.

horizontal merger

In which of the following cases is a buyer in breach of a sales contract?

if the buyer refuses to accept conforming goods

If a promissory note is secured by a piece of real estate, then the note is called a(n) ________.

mortgage note

A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29. The customer handed the cashier a $50.00 bill and said, "I accept. We have a deal." The cashier then noticed the price tag and told the customer an error had been made and that the price was $229. In this case ___________.

no contract was formed because the tag is not an offer.

Restraints of trade that are unlawful under Section 1 of the Sherman Act if their anticompetitive effects outweigh their procompetitive effects are known as ________.

nonprice vertical restraints

Price fixing is a ________ violation of Section 1 of the Sherman Act.

per se

In a draft transaction, the drawee is the party who ________.

receives the money from a draft

The legality of nonprice vertical restraints of trade under Section 1 of the Sherman Act is examined by applying the ________.

rule of reason

Which of the following is the only act that includes criminal sanctions for the usage of unfair trade practices?

the Sherman Act

Which of the following is considered to be a primary defense against Section 7 of the Clayton Act?

the failing company doctrine

Who is the drawee of a check?

the financial institute where the drawer has an account

The term ________ refers to the legal, tangible evidence of ownership of goods.

title

A ________ is a product formula, pattern, design, compilation of data, customer list, or other covert business information.

trade secret

The term "Ex-ship" requires the seller to bear the expense and risk of loss until the goods are unloaded from the ship at its port of destination.

true

Thomas signed a sales contract with Bricklay's, a firm that supplies bricks for private individuals. The contract specified the type and amount of bricks needed, and that Thomas would pick up the bricks from the Bricklay's warehouse 15 days later. Thomas received a document of title, but failed to pick up the goods on the stipulated date. In this scenario, at what point of time is the title to goods passed over to Thomas?

when Thomas receives the document of title