Exam 4 - Legal & Social Environments of Business

Direct infringement includes which of the following? Choose 3 answer choices.

- Making a patented invention without permission from the patent owner. - Using a patented invention without permission of the patent owner. - Selling a patented invention without permission from the patent owner.

Under the FTC rules, when a consumer legally cancels a door-to-door sales contract, the seller must return the buyer's money within

10 days

A trademark lasts for

10 years, but it can be renewed for an unlimited number of terms as long as it is used.

An author may expect to receive copyright protection for the life of the author plus:

70 years

When a tenant wrongfully holds over from the term of their lease, it is called:

A tenancy at sufferance.

Which of the following types of intellectual property may only be owned by a business?

A trade secret

The attribute that distinguishes personal property from real property is:

Ability to be moved.

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:

Bait and switch

The earliest international agreement that provided copyright protections among the signatories to the agreement was the:

Berne Convention

Methods for transferring title to real estate include:

By sale, by gift, through a will, through adverse possession, and through eminent domain

Which of the following is a provision of the CARD Act?

Credit card bills must be mailed at least 21 days ahead of their due dates.

In order to form a bailment, the bailor must:

Deliver actual possession of personal property to the bailee

The landlord's first important duty to a tenant is to

Deliver possession

The role of a state's attorney general in handling complaints about potential violations of consumer protection laws is to:

Ensure a safe and fair marketplace for the citizens of the state.

Which consumer protection law specifically provides for punitive damages?

Fair Credit Reporting Act

The Equal Credit Opportunity Act makes it illegal for a lender to discriminate against a potential borrower because of race, national origin, religion, or sex, but is is permissible to treat a borrower differently if he or she is on welfare.

False

The Supreme Court has held that parody of copyrighted materials is a violation of copyright law.

False

Signing an 18-month lease on a two-bedroom townhouse with a monthly rent of $900 creates a:

Fixed-term tenancy

A tenancy for years will last:

For a definite period of time.

A consumer product is any article, or its component parts, produced or distributed for sale to a consumer:

For the consumer's own use or enjoyment

Under the TILA, a qualified mortgage (QM)

Limits all of a borrower's debt to 43 percent of his or her income

Which of the following qualifies for protection under the first sale doctrine?

Lucia purchases a book and later resells it to her friend.

If a credit reporting agency fails to remove known errors in a consumer's credit report after request by the consumer, the agency:

May be required to pay damages to the consumer.

When a tenant is allowed to remain in possession of the residence after the expiration of a fixed-term tenancy by continuing to pay monthly rent, the tenancy has become a:

Periodic tenancy

McDonald's famous golden arches and other marks used by the company illustrate a

Service mark

Ted and Janet were married and owned a piece of jungle property in a tenancy by the entirety. When Janet died, her will left all of her real property to T.J., Ted and Janet's adult son. T.J. claims he is the sole owner of the jungle property. Ted objects and files a lawsuit for sole ownership of the jungle property.

Ted will win because property owned in a tenancy by the entirety includes rights of survivorship for the surviving spouse. Ted will get the title to the entire property.

A U.S. citizen who writes a book in the United States automatically has copyrighted protections in other signatory countries under which agreement?

The Berne Convention

In order for a copyright holder to collect money damages from a person who used copyrighted material, it must be proven that

The infringer actually copied the work

Courts will consider all EXCEPT the following in determining whether the fair use doctrine applies:

The medium of the copyrighted work.

Which of the following does NOT qualify an object as a fixture?

The object was in or on the property at the time of sale.

Land burdened by an easement is called:

The servient estate

The issue in the POM Wonderful, LLC v. FTC case involved

The type of evidence necessary to support health claims in advertisements

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

Landlord-tenant relationships are governed by a mixture of property law, contract law, and tort law.

True

The FTC may consider an act unfair if it simply violates public policy

True

Which of the following consumer credit acts helps potential borrowers understand the cost of a loan?

Truth-in-Lending Act (TILA)

Which of the following scenarios represents an example of an involuntary bailment? Select 2 answers.

- A customer mislaying a phone in a restaurant. - A person forgetting to take home their cooler from their friend's cookout.

What remedies can consumers get from a debt collection agency for illegal treatment? Choose 3 answer choices.

- Attorney's Fees - Court Costs - Damages

The fair use doctrine applies to reproductions of copyrighted works for the purpose of: (Select 3 answers)

- Teaching and scholarship - Criticism - News reporting

Which of the following are requirements for a valid gift? Choose 3 answers.

- The donee (one receiving the gift) must accept the gift - The gift must be delivered - The giver must intend to make a gift

What are two functions of the Consumer Product Safety Commission (CPSC)? Choose 2 answers.

- To set the safety standards for consumer products. - To ban the manufacture and sale of hazardous products

In a tenancy in common: (Select 2 answers)

- Two or more people own the same piece of property. - Co-owners may ask the court for a partition.

The TRIPS Agreement does which of the following? Choose 2 answer choices.

- Requires members of the WTO to have laws and remedies protecting intellectual property rights. - Establishes standards for protection of intellectual property

Which of the following is an example of a fixture?

Cabinets attached to the wall of a garage

Real property consists of which of the following? Select 3 answers.

- Buildings - Land - Fixtures

Which of the following behaviors is prohibited under the FDCPA? Choose 2 answer choices.

- Notifying a consumer's neighbor that they are in debt. - Calling a consumer at 3 a.m.

Courts will consider all the following in determining whether the fair use doctrine applies:

- The effect of the use on the potential market - The amount of the work used in relation to the work as a whole. - The purpose and character of the use.

Which of these situations are governed by the Magnuson-Moss Warranty Act? Choose 2 answer choices.

- A fan is selling for $100, and the manufacturer offers a full warranty. - A fan is selling for $34, but the manufacturer does not want to offer a full warranty.

The remedies available to injured consumers under federal and state consumer protection laws may include: (Choose 3 answers.)

- Attorney's fees and costs - Damages for actual injury or harm caused. - Punitive damages

Which of the following actions are associated with the Consumer Financial Protection Bureau (CFPB)? Choose 2 answers.

- Collecting and tracking consumer complaints. - Writing and enforcing rules for financial institutions

Puffery includes what kinds of activities?

Ads with exaggerated statements

Whether or not the zoning board will grant a request for a variance depends upon

All of these are correct - The type of the proposed building - The reaction of the neighbors - The reason the owner claims she or he is harmed by the zoning ordinance

The first sale doctrine:

Allows a person who owns a lawfully made copy of a copyrighted work to sell the copy.

A nonpossessory interest in land owned by another that entitles its holder to a specific limited use of the land is called:

An easement

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?

Chase does not have to pay for the magazine, even if the company continues to send it to him.

The agency that oversees the credit practices of banks, mortgage lenders, and credit card companies is called the:

Consumer Financial Protection Bureau

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:

Copyright

Which of the following credit acts examines lenders' practices regarding race, religion, national origin, color, gender, marital status, or age?

Equal Credit Opportunity Act (ECOA)

The Trademark Law Treaty made it more difficult to apply for trademarks around the world.

False

The Truth in Lending Act regulates interest rates or the terms of a loan

False

Which of the following types of trademarks are in the correct order, from highest protection to lowest protection?

Fanciful, arbitrary, suggestive, descriptive, generic

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:

Gift causa mortis

Bruce tells his son, "You can have my 1990 truck, but if your grades fall, I'm taking it back.

Has made no gift

Select the correct answer:

Hill rents a boat to Dan. The boat is located at a lake 30 miles away. Hills gives Dan keys to the boat. Dan drives to the lake and takes possession of the boat. In this case, the boat has been delivered to and accepted by Dan, and Dan is a bailee.

A business will be able to protect its trademark for how long?

If unregistered, as long as it is in use.

Property that has been voluntarily placed somewhere by the owner and then inadvertently forgotten is:

Mislaid

A security interest in real property is called a

Mortgage

Ernest invents a novel, useful, nonobvious product. He

Must apply for a patent within one year of selling the product commercially.

Patentability requires the invention be:

Novel, non-obvious, and useful

If an individual owns a piece of property and has the unlimited authority to use and sell the property, they:

Own the property in fee simple absolute

Which of the following types of intellectual property protection usually has a set term of 20 years?

Patent

To prevent others from making, selling, or using an invention, an inventor should seek what type of intellectual property protection?

Patent protection

Which of the following conveys a possessory interest in real property?

Periodic tenancy

A college professor copies seven chapters from a book called "How to Get Better Grades - A Creative Approach to College Success!" There are ten chapters in the book. She incorporates this material into a packet that is printed in her college's copy center. The packet is then placed on the required materials list for students to purchase and is sold in the local book store. The author of the book believes the professor has violated his copyright.

The author is right. The professor should not have copied the chapters and placed them for sale in the bookstore.

Which of the following is true about easements appurtenant?

They "run with the land"

One of the key purposes of the Digital Millennium Copyright Act (DMCA) is:

To bring copyright laws into the digital age by regulating digital media copyright infringement

A business using a word, phrase, symbol, or design to identify and distinguish its brand of goods would protect that branding with a:

Trademark

A trade secret is a formula, device, process, method, or compilation of information that, when used in business, gives the owner an advantage over competitors who do not know if:

True

Carlos conveys his property "to Noah for life, then to Maxie." Noah has a life estate, and Maxie has a remainder.

True

What is the difference between deceptive advertising and puffery? Choose 2 answer choices.

- Deceptive advertising is prohibited; puffery is allowed. - Reasonable people realize puffery is not meant to be taken literally, but they could be fooled by deceptive advertising.

What does the Magnuson-Moss Warranty require? Choose 2 answer choices.

- The name of the person to contact for warranty services. - The address of the person to contact for warranty services.

Which of the following qualifies an object as a fixture?

- The object was specially made for the property. - The object is intended by the owner to remain there permanently. - It is attached to the property in such a way that removing it would cause damage.

Which of the following actions can the Federal Trade Commission (FTC) employ against unfair and deceptive advertising? Choose 2 answers.

- counter advertising sanction - Cease and desist order

A plaintiff is required to prove which two of the following elements for trademark dilution? Choose 2 answers.

- The plaintiff's trademark is famous and distinctive - The defendant's use has blurred or tarnished the distinctiveness of the plaintiff's mark.