Module 4

Which of the following conveys a possessory interest in real property? a. periodic tenancy b. profit c. license d. easement

a. periodic tenancy

Which of the following is a possessory interest in land? a) easement b) profit c) fee simple absolute d) license

c) fee simple absolute

Charles agrees to store Tuan's car in Charles's garage for the winter months while Tuan visits his grandmother in California. As a bailee, Charles is automatically entitled to use Tuan's car while Tuan is away. True False

False

Southern Bar-B-Q owns a special, secret recipe for sauce which it guards because it gives the restaurant a competitive advantage. If Mort willfully misappropriates the recipe, a court may hold him liable to Southern for double damages. True False

True Anyone who misappropriates a trade secret is liable to the owner for (1) actual damages, (2) unjust enrichment, or (3) a reasonable royalty. If the misappropriation was willful or malicious, the court may award attorney's fees and double damages.

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

a. Berne Convention.

The attribute that distinguishes personal property from real property is: a. ownership by an individual rather than a business. b. ability to be moved. c. tangibility. d. value.

b. ability to be moved.

Which of the following qualifies for protection under the first sale doctrine? a. Francesco buys an original painting, paints an exact copy of it, and sells it. b. Lucia purchases a book and later resells it to her friend. c. Sofia writes a piece of music and sells the rights to the composition. d. Hugo buys a computer program, copies the code to his own computer, and then sells the program to another person.

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

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

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

Dell sold computers online that were supposed to be loaded with a particular software. But, because the software was not yet available, Dell sent customers a coupon for the software "when available." What did Dell do wrong? I. Failed to offer buyers the opportunity to cancel their orders II. Did not automatically cancel the orders III. Did not ship the software within 30 days Answer a. I and II b. I, II, and III c. I and III d. II and III

b. I, II, and III

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

c. mislaid.

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 A customer depositing their luggage with an airline A customer leaving their car to be serviced with a mechanic

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

A plaintiff is required to prove which two of the following elements for trademark dilution? Choose 2 answers. The plaintiff's and the defendant's marks are identical. The defendant's use has blurred or tarnished the distinctiveness of the plaintiff's mark. The defendant intended to dilute the plaintiff's trademark. The plaintiff's trademark is famous and distinctive.

The plaintiff's and the defendant's marks are identical. The plaintiff's trademark is famous and distinctive.

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

c. patent

When a tenant wrongfully holds over from the term of their lease, it is called: a. a tenancy at will. b. a tenancy for years. c. a periodic tenancy. d. a tenancy at sufferance.

d. a tenancy at sufferance.

Real property consists of which of the following? Select 3 answers. land harvested crops fixtures buildings

land fixtures buildings

Mrs. Larkin rents an apartment to a couple who argue continually, disturbing other tenants. Without going through the lawful eviction procedure in court, one day she waits until the couple is out of town and changes all the locks. What has occurred? a) a variance b) an actual eviction c) a constructive eviction d) an easement

b) an actual eviction Mrs. Larkin has prevented the tenants from possessing the premises.

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

c. fixed-term tenancy.

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

b. cabinets attached to the wall of a garage

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 inter vivos. b. gift causa mortis. c. gift causa vivos. d. gift extra mortis.

b. gift causa mortis.

If an individual owns a piece of property and has the unlimited authority to use and sell the property, they: a. have a life estate. b. own the property in fee simple absolute. c. have a remainder interest. d. have a concurrent interest

b. own the property in fee simple absolute.

Under FTC rules, when a customer legally cancels a door-to-door sales contract, the seller must return the buyer's money within a) 3 days. b) a "reasonable time" after the sale was made. c) 5 days. d) 10 days.

d) 10 days. Under the FTC door-to-door rules, a salesperson is required to notify the buyer that she has the right to cancel the transaction prior to midnight of the third business day thereafter. If so cancelled, the seller must return the buyer's money within 10 days.

The first sale doctrine: a. does not apply to computer programs readable by humans. b. allows for the rental or lease of sound recordings. c. allows the owner of a copy of a copyrighted work to further copy and sell that work. d. allows a person who owns a lawfully made copy of a copyrighted work to sell the copy.

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

In order to form a bailment, the bailor must: a. deliver at least constructive possession of personal property to the bailee. b. transfer possession and title of personal property to the bailee. c. deliver title of personal property to the bailee. d. deliver actual possession of personal property to the bailee.

d. deliver actual possession of personal property to the bailee.

Thomas's English Muffins wanted to protect the method by which it makes muffins with air pockets—what it calls "nooks and crannies." What would be the best way to achieve this goal? a. Patent b. Copyright c. Trademark d. Trade secret e. This method cannot be protected.

e. This method cannot be protected.

Quick, Onyx, and Nash were deeded a piece of land as tenants in common. The deed provided that Quick owned one-half the property and Onyx and Nash owned one-quarter each. If Nash dies, the property will be owned as follows: a. Quick 1/2, Onyx 1/2 b. Quick 5/8, Onyx 3/8 c. Quick 1/3, Onyx 1/3, Nash's heirs 1/3 d. Quick 1/2, Onyx 1/4, Nash's heirs 1/4

d. Quick 1/2, Onyx 1/4, Nash's heirs 1/4

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: a. tenancy at will. b. tenancy at sufferance. c. tenancy for months. d. periodic tenancy.

d. periodic tenancy.

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

False

Which of the following are requirements for a valid gift? Choose 3 answers. The gift must have value. The giver must intend to make a gift. The gift must be delivered. The donee (one receiving the gift) must accept the gift.

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

The Telephone Consumer Protection Act (TCPA) prohibits telemarketers from making autodialed and/or prerecorded calls or texts to cell phones, and prerecorded calls to residential land lines unless the consumer unambiguously consents in writing. True False

True If you receive any of these prohibited contacts, you can file a complaint atwww.fcc.gov/complaints. Or you can sue and recover from $500 to $1,500 per call. Informational calls, charitable outreach, and healthcare messages are exempted from this ban.

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

True Most leases, commercial and residential, include a covenant that the tenant will not disturb other tenants in the building. A landlord may evict a tenant who unreasonably disturbs others. The test is reasonableness. A landlord does not have the right to evict a residential tenant for giving one loud party, but may evict a tenant who repeatedly plays loud music late at night and disturbs the quiet enjoyment of other tenants.

Section 5 of the Federal Trade Commission Act (FTC Act) prohibits unfair and deceptive actsor practices. True False

True Under the FTC Act, an advertisement is deceptive if it contains an important misrepresentation or omission that is likely to mislead a reasonable consumer.

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 it. True False

True In determining if information is a trade secret, courts consider: • How difficult (and expensive) was the information to obtain? Was it readily available from other sources? • Does the information create an important competitive advantage?• Did the company make a reasonable effort to protect it?

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

True Once a name is generic, the owner loses the trademark because the name can no longer be used to distinguish one product from another—all products are called the same thing.

Depending on state law, if a lender violates the usury laws, the borrower could possibly be allowed to keep _______________. I. the interest that exceeds the usury limit II. all the interest III. all of the loan and the interest a. All of these b. Only I c. Only II d. Only III e. None of these

a. All of these

Taylor Swift wanted to trademark her song lyric: "And I'll write your name." She______ . a. can trademark it because it is a short phrase associated with her entertainment services b. can trademark it only if it is in a tangible form c. cannot trademark it because it is generic d. None of these because short phrases cannot be trademarked

a. can trademark it because it is a short phrase associated with her entertainment services

A tenant renting an apartment under a three-year written lease that does not contain any specific restrictions may be evicted for: a. counterfeiting money in the apartment. b. keeping a dog in the apartment. c. failing to maintain a liability insurance policy on the apartment. d. making structural repairs to the apartment.

a. counterfeiting money in the apartment.

Patentability requires the invention be: a. novel, non-obvious, and useful. b. commercially valuable. c. distinctive. d. registered with the UTSA.

a. novel, non-obvious, and useful.

If you buy a book, you have the legal right to_____. a. read it as many times as you want and then give it away b. scan it to your computer and then email it to a friend c. scan it to your computer and sell the PDF d. All of these

a. read it as many times as you want and then give it away

Land burdened by an easement is called: a. the servient estate. b. the dominant estate. c. a profit. d. the licensed estate.

a. the servient estate.

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

a. to bring copyright laws into the digital age by regulating digital media copyright infringement.

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 the first $100 of unauthorized charges. b) Bill is responsible for the first $50 of unauthorized charges. c) Bill is not responsible for any of the unauthorized charges. d) Bill is responsible for half of the unauthorized charges.

b) Bill is responsible for the first $50 of unauthorized charges.

Which of the following cases concerned a trade secret? a) Bikram's Yoga College of India, L.P. v. Evolation Yoga, LLC b) CDM Media USA, Inc. v. Simms c) Association for Molecular Pathology v. Myriad Genetics, Inc. d) AMF Inc. v. Sleekcraft Boats

b) CDM Media USA, Inc. v. Simms This case considered whether a list of members in a LinkedIn group constituted a trade secret.

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. a) The author is not correct. It does not appear that the professor actually made any money from the alleged copyright infringement. b) The author is right. The professor should not have copied the chapters and placed them for sale in the bookstore. c) The author is not correct. Under the "fair use doctrine," a college professor can copy material and distribute it to students for educational purposes. d) The author is technically correct. However, even though an infringement occurred, he cannot sue the professor since educational personnel are exempt from liability under copyright law.

b) The author is right. The professor should not have copied the chapters and placed them for sale in the bookstore. To prove a violation, the plaintiff must present evidence that the work was original and that either: the infringer actually copied the work, or the infringer had access to the original and the two works are substantially similar.

If a customer trips and falls over a rip in the carpet in a retail store, who is liable under common law rules? a) The landlord alone is liable for not maintaining the property. b) The landlord and the tenant are probably both liable. c) The customer is liable because he didn't watch where he was going. d) The tenant alone is liable for not informing the landlord of the defective carpet and getting it repaired.

b) The landlord and the tenant are probably both liable.

Under the TILA, a qualified mortgage (QM) a) limits upfront points and fees to 5 percent. b) limits all of a borrower's debt to 43 percent of his or her income. c) must allow for negative amortization. d) allows balloon payments only if the borrower agrees up front.

b) limits all of a borrower's debt to 43 percent of his or her income. To help lenders comply with these requirements, the CFPB established criteria for what it calls qualified mortgages (QMs). If lenders give a QM, they are deemed to have complied with TILA because it is likely that the borrower can afford to repay the loan.

A security interest in real property is called a a) reversion. b) mortgage. c) grant easement. d) lien.

b) mortgage. A mortgage is a security interest in real property. The homeowner who borrows money is the mortgagor because she is giving the mortgage to the lender. The lender, in turn, is the mortgagee, the party acquiring a security interest. The mortgagee in most cases obtains a lien on the house, meaning the right to foreclose on the property if the mortgagor fails to pay back the money borrowed.

A U.S. citizen who writes a book in the United States automatically has copyright protections in other signatory countries under which agreement? a. The Madrid Protocol b. The Berne Convention c. The TRIPS Agreement d. The Paris Convention

b. The Berne Convention

Companies must obtain permission from a consumer before charging for overdrafts on _______________. a. debit cards b. credit cards c. neither d. both

b. credit cards

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. trademark. c. copyright. d. trade secret.

b. trademark.

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

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

For the FTC to consider a practice to be unfair, it must meet a three-part test. Which of the following is NOT one of those tests? a) The practice causes a substantial consumer injury. b) The harm of the injury outweighs any countervailing benefit. c) The consumer had no reasonable way to recoup lost funds from the injury. d) The consumer could not reasonably avoid the injury.

c) The consumer had no reasonable way to recoup lost funds from the injury. The Commission considers a practice to be unfair if it meets a three-part test. The statement that "The consumer had no reasonable way to recoup lost funds from the injury" is not a part of the test.

Faber-Castell began manufacturing pencils in 1761. Although pencils and erasers had both existed for some time, the company did not begin putting erasers on the ends of its pencils until the 1870s. The company was sued by an inventor who had previously patented this idea. The case went to the Supreme Court. Who won the case? a. The patent holder because no one had ever put an eraser on a pencil before b. The patent holder because the PTO had approved his patent c. Faber-Castell because the pencil with an eraser was not novel d. Faber-Castell because the pencil with an eraser was not useful

c. Faber-Castell because the pencil with an eraser was not novel

Which of the following does NOT qualify an object as a fixture? a. It is attached to the property in such a way that removing it would cause damage. b. The object is intended by the owner to remain there permanently. c. The object was in or on the property at the time of sale. d. The object was specially made for the property.

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

A couple thought of a clever name for an automobile. They wanted to protect this name so that they could ultimately sell it to a car manufacturer. What would be the best method to attain this goal? a. Patent b. Copyright c. Trademark d. Trade secret e. This name cannot be protected.

c. Trademark

Consider the following: I. A house (value: $250,000) II. A giant smart television in the house (value: $2,999) III. The land that the house sits on (value: $30,000) IV. An old car in the house's garage (value: $5,001) V. How many of these items are personal property? a. All four of them b. Three of them c. Two of them d. One of them e. None of them

c. Two of them

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. trademark. b. patent. c. copyright. d. trade secret.

c. copyright

A tenancy for years will last: a. at least one year. b. for not more than twenty-four months. c. for a definite period of time. d. for at least twenty-four months.

c. for a definite period of time.

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

c. if unregistered, as long as it is in use

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

c. patent protection

A company which has used a trademark similar to another's trademark in a way that is likely to cause confusion among consumers has committed: a. misappropriation. b. copyright infringement. c. trademark infringement. d. trademark dilution.

c. trademark infringement.

In a tenancy in common: (Select 2 answers) if either of the co-owners sells their share of the property, the tenancy in common is severed. co-owners may ask the court for a partition. if either of the co-owners dies, the property automatically passes to the surviving co-owners. two or more people own the same piece of property.

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

The fair use doctrine applies to reproductions of copyrighted works for the purpose of: (Select 3 answers) criticism. news reporting. avoiding royalty fees. teaching and scholarship.

criticism. news reporting. teaching and scholarship.

Whether or not the zoning board will grant a request for a variance depends upon a) the type of the proposed building. b) the reaction of the neighbors. c) the reason the owner claims she or he is harmed by the zoning ordinance. d) All of these are correct.

d) All of these are correct.

The Fair Debt Collection Practices Act prohibits which of the following practices by a debt collector? a) visiting a debtor at work if the employer permits personal visits b) using neighbors to locate the debtor c) telephoning the debtor at 8:00 a.m. d) falsely representing himself as a lawyer

d) falsely representing himself as a lawyer Collectors may not: Imply that they are attorneys or government representatives when they are not Use a false name. Call or write a debtor who has notified the collector in writing that he wishes no further contact. Call or write to a debtor who is represented by an attorney. Threaten a debtor or use obscene or abusive language.

In order for a copyright holder to collect money damages from a person who used copyrighted material, it must be proven that a) the infringement was intentional. b) the copyright holder sustained more than $500 in actual damages. c) the copyrighted material contained the copyright symbol, name of the copyright holder, and the year of copyright. d) the infringer actually copied the work.

d) the infringer actually copied the work.

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

d. 70 years.

On the first of every month, your rent is automatically deducted from your bank account. You are moving out and want to make sure the payments stop. What should you do? I. Tell the bank at least three days before the first of the month. II. Write the bank at least three days before the first of the month. III. Have the landlord sign a form, which you then mail or deliver to the bank at least three days before the first of the month. a. I b. II c. III d. Either I or II

d. Either I or II

Which of the following forms of tenancy will be created if a tenant stays in possession of leased premises without the landlord's consent, after the tenant's one-year written lease expires? a Tenancy at will b. Tenancy for years c. Periodic tendency d. Tenancy at sufferance

d. Tenancy at sufferance

Zach sells Cutco Knives door to door. Which of the following statements is false? a. The buyer has three business days to cancel the order. b. Zach must tell the buyer of her rights. c, Zach must give the buyer a written notice of her rights. d. The seller can cancel orally or in writing. e. If the seller cancels, Zach must return her money within ten days.

d. The seller can cancel orally or in writing.

Which of the following is true about easements appurtenant? a. They are temporary. b. They benefit a particular person as opposed to the land. c. They give a person authority to remove something from the land of another. d. They "run with the land."

d. They "run with the land."

Which of the following types of trademarks are in the correct order, from highest protection to lowest protection? a. generic, descriptive, arbitrary, fanciful, suggestive b. arbitrary, fanciful, suggestive, descriptive, generic c. suggestive, arbitrary, fanciful, generic, descriptive d. fanciful, arbitrary, suggestive, descriptive, generic

d. fanciful, arbitrary, suggestive, descriptive, generic

If you receive a product in the mail that you did not order, _______________. a. you must pay for it or return it b. you must pay for it only if you use it c. you must throw it away d. it is a gift to you e. you must return it, but the company must reimburse you for postage

d. it is a gift to you

The TRIPS Agreement does which of the following? Choose 2 answer choices. establishes standards for protection of intellectual property makes it an international crime to infringe on patent rights automatically provides patent registration in all signatory countries requires members of the WTO to have laws and remedies protecting intellectual property rights

establishes standards for protection of intellectual property requires members of the WTO to have laws and remedies protecting intellectual property rights

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

b. a trade secret

Professor McDonald owns the following property. Which of these is NOT real property? a) Professor McDonald's restored Victorian-era house b) the grove of peach trees on Professor McDonald's property c) custom-made bookshelves fitted into the library of Professor McDonald's home d) the books that line Professor McDonald's bookshelves

d) the books that line Professor McDonald's bookshelves Books would be considered personal property.

Courts will consider all EXCEPT the following in determining whether the fair use doctrine applies: a. the medium of the copyrighted work. b. the effect of the use on the potential market. c. the amount of the work used in relation to the work as a whole. d. the purpose and character of the use.

a. the medium of the copyrighted work.

Under §5 of the FTC Act, anyone who receives unordered merchandise in the mail may treatit as a gift. True False

True A person may use it, throw it away, or do whatever else she wants with it.

VitaminWater has become such a success that other companies are also now selling similar (but not identical) flavored colored water. Some competitors bottle their drinks in a similar bell-shaped bottle with a two-toned label that has a horizontal color band. What is the best infringement claim for VitaminWater to make against these competitors? a. Patent b. Copyright c. Trademark d. Trade secret e. There is no good claim.

c. Trademark

Direct infringement includes which of the following? Choose 3 answer choices. Selling a patented invention without permission from the patent owner Making a patented invention without permission from the patent owner Encouraging another to sell 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 Making a patented invention without permission from the patent owner Using a patented invention without permission of the patent owner

Liz and Jeff live in California, a state that recognizes community property. Jeff is a machinist who makes $30,000 a year. Liz is the owner of a franchise where her take-home profit is approximately $75,000 a year. Jeff and Liz purchased a house during their marriage wherein Liz paid three-fourths of the purchase price and Jeff paid one-fourth. Which of the following statements is correct with regard to Jeff and Liz? a) Each owns one-half of the real property and other assets they acquire during the marriage. b) The community property rules do not allow Jeff and Liz to maintain separate ownership of assets they each bring to the marriage or inherit. c) Community property can be sold by Jeff or Liz without consent by the other. d) Jeff owns one-fourth of the property and Liz owns three-fourths.

a) Each owns one-half of the real property and other assets they acquire during the marriage.

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

d. an easement.