ARM 402 Practice Exam Questions - Ch 4, 5, and 6

A patent issued for an invention or process that has some usefulness, does not have to be marketable, but must work is a A) Utility patent B) Plant patent C) Process patent D) Design patent

A

Which one of the following should address quality control issues if a trademark will be used on a product other than the trademark owner's own product? A) Restrictive covenant B) Licensing agreement C) Registration D) Notice

B

A patent used for the invention of a machine is a A) Utility patent B) Process patent C) Plant patent D) Design patent

A

An invention can retain both trade secret protection and patent protection only until the A) Patent is published B) Invention is sold to a manufacturer or producer C) Invention is produced, marketed, and sold D) Patent application is filed

A

A defendant's violation of a statute can A) Constitute a breach of duty of care B) Be categorized as irrelevant in a civil matter C) Be relevant only in a criminal context D) Translate into automatic damages being awarded to a plantiff

A

A release of liability agreement for activities specified in the contract is A) An exculpatory agreement B) A duty C) A waiver D) A hold harmless agreement

A

Brooks Irrigation Services has designed plans for a new lawn sprinkler system. In order to safeguard their document and control infringement exposures, they have placed the notation **** on their published plans. This is known as a copyright A) Notice B) Laches C) Restrictive covenant D) Registration

A

Conditions that increase the frequency or severity of losses are A) Hazards B) Risks C) Exposures D) Liabilities

A

Few defenses are available to an organization to reduce the fine or penalty it faces when it violates A) Statutes B) Vicarious liabiity laws C) Products liability laws D) Legal interests by torts

A

Like domestic courts, courts deciding international cases must determine whether they have jurisdiction over the person or entity and over the subject matter and whether they have jurisdiction to A) Render the particular judgement in the case B) Apply injuctions, fines, tariffs or other penalties C) Establish precedent D) Revoke rights or benefits of disrupting parties

A

One of the essential steps in selecting new operators for any motor vehicle is A) Finding prospects through advertising, pre-screening, and reviewing applications B) Providing training in traffic laws of the jurisdictions that the operators will be traversing C) Assuming that the operator's state of residence has lenient licensing standards D) Rewarding outstanding performance or disciplining substandard performance

A

Punitive damages are intended to A) Punish the defendant B) Compensate the defendant for medical expenses C) Punish the plaintiff D) Compensate the injured party for pain and suffering

A

Those resolving international disputes between individuals or corporations first apply any international agreement or treaty that governs the dispute. If no international agreement or treaty applies, then A) Any relevant laws of the involved countries are applied to the dispute B) The matter is reconciled through an international dispute resolution process C) The dispute is submitted to an arbitration process D) The dispute is settled according to the laws of the nation where the dispute occurred

A

Which one of the following allows drivers to work at a reasonable pace? A) A suitable schedule B) A safety incentive system C) An incentive-pay system D) A lax schedule

A

Which one of the following criteria must a creative work meet to be eligible for copyright protection? A) The work must be original B) The work must be created in the course of the individual's employment C) The work must not be reproducible D) The work must be created on commission

A

Which one of the following is a consequence that would likely result from legal liability arising from a breach of contract? A) Specific performance B) Indirect loss C) Ordered restriction D) Sanction

A

Which one of the following terms refers to a condition that can cause property to deteriorate or destroy itself? A) Inherent vice B) Depreciation C) Decay D) Unsuitability

A

Wilderness Experience is a company that organizes and manages team-building excercises for corporate management teams. Some activities management teams engage in include rock climbing, white water rafting, climbing rope ladders, riding zip-lines suspended in the air, and bungee jumping. Although Wilderness Experience employs extensive physical loss control measures, it also requires participants to sign a contract absolving Wilderness Experience from liability arising from any injuries sustained while participating in Wilderness Experience activities. The contract the company uses absolving them of liability is A) An exculpatory agreement B) A unilateral notice C) A waiver D) An estoppel agreement

A

ABC Company and XYZ Company have entered into a contract which stipulates that, in the event of a breach, the breaching party will pay the non-breaching party the sum of $250,000. Such stipulations are called A) Assigned damages provision B) Liquidated damages provision C) Nominal damages provision D) Consequential damages provision

B

Betty has invented a new device that reduces the time it takes to backup computer data by 90 percent. She believes this will be of interest to several major computer and data manufactuers. Betty should protect her invention with a A) Servicemark B) Patent C) Trademark D) Copyright

B

Copyrights are generally owned by the person (author) who created the work, except when the work A) Has not been registered with the U.S. Copyright Office B) Was created in the course of the author's employment C) Was jointly prepared by two or more authors D) Was created in a reproducible medium such as video or audio tape

B

In the typical civil law case the preliminary stage involves submission of pleadings and A) Preparation of a written summary of the proceedings B) Appointment of a hearing judge C) Documentation of evidence D) Definitions of legal terms

B

Inserted into a contractual agreement, which one of the following provisions limits the amount for which one party might otherwise be liable? A) Duty to mitigate clause B) Liquidated damages clause C) Both-to-blame clause D) Valuation clause

B

Intellectual property is protected through all of the following, EXCEPT: A) Statutes B) Torts C) Case law D) Regulations

B

Jurisdictional issues are increasing in importance and complexity as A) Governments continue to sign treaties related to international business B) Governments try to control the increase in international business C) Organizations like the United Nations gain more contol over international business dealings D) Treaties, which were once the primary way governments regulated international business, continue to fall out of favor

B

The focus of risk control efforts regarding trade secrets should be on A) Use of notices B) Disclosure of information only to essential personnel C) Use of licensing agreements D) Enforcing registration rights

B

The production phase of an organization's fleet life cycle involves A) Determining what types of vehicles will meet an organization's needs B) Purchasing vehicles selected in the conceptual and engineering phases C) Using the vehicles to transport freight or passengers D) Selecting the vehicles, operators, routes, schedules, and maintenance

B

The risk manager for Rapids Rover, a white water rafting company, is working with an attorney to draft a new rental agreement. To enable Rapids Rover to avoid liability for negligence or unsafe acts, they decide to make everyone sign A) A unilateral notice B) A release of liability C) A warrantee D) A waiver

B

The two types of compensatory damages are A) Direct and indirect B) Special and general C) General and punitive D) Special and punitive

B

Which one of the following can limit liability if they are posted so that they are physically apparent, expressed in clear terms, in language the other party understands, and reasonable in extent? A) Hold-harmless agreements B) Unilateral notices C) Waivers D) Exculpatory agreements

B

Which one of the following is a contractual provision by which one party agrees to assume the liability of a second party? A) Unilateral notices B) Hold-harmless agreements C) Exculpatory agreements D) Waiver notices

B

Which one of the following statements is true regarding a trade secret? A) A trade secret in force for 10 years automatically receives a patent B) A trade secret remains in force for as long as the secret can be maintained C) A trade secret is created with a formal application D) A trade secret has a limited life span

B

Which one of the following trademark categories provides the least protection against infringement by competitors? A) Suggestive mark B) Descriptive mark C) Fanciful mark D) Arbitary mark

B

A2Z Contracting entered into a contract with a large corporation headquartered in a different state. A2Z's counsel recommended that they negotiate to have a clause included into a contract that specifies their state's law will govern the contract's interpretation. This is an example of A) A loss prevention measure for contractual liability B) Limiting liability C) A loss reduction measure for contractual liability D) Diversification

C

Hadley Computer Manufacturing is being sued by another computer manufacturer because Hadley's logo is written in such a way that it confuses consumers regarding which manufacturer is the creator of the product. This is an example of an infringement of A) Copyright B) Servicemark C) Trademark D) Patent

C

Hazard control of the loss exposures of premises and operations, products, and completed operations is a key aspect of risk control for A) Vicarious liability B) Statutory liability C) Tort liability D) Contractual liability

C

Loss reduction of statutory liability A) Uses techniques similar to those for contractual liability B) Often uses the assumption-of-risk defense C) Is generally ineffective D) Relies on valuation provisions

C

Margo is a technology company analyst for a large investment company. To determine a market vaue for the copanies she analyzes, Margo calculates the present value of the future cash flows that will be derived from the intellectual property these companies own. This valuation method is called the A) Fair market value approach B) Capital budgeting approach C) Income approach D) Cost approach

C

Not all trademarks are covered by the U.S. federal laws. One type of mark not receiving the protection of trademark law is A) A random mark B) An image mark C) A generic mark D) An implied mark

C

The best example of legal liability resulting from statutes is A) Infringing on the reputation of others through libel or slander B) Exposing others to unreasonable danger by failing to excercise a standard of care C) Unfairly discriminating against certain employees on the basis of gender D) Failing to comply with a contract's terms

C

The lease for a tenant's occupany of an office space states that the tenant will maintain the property in reasonable condition. The tenant fails to clear ice and snow from the property and a passerby fails and is injured. On what basis might the tenant most likely be liable for the passerby's injuries? A) Strict liability B) Negligence C) Breach of contract D) Tort

C

The majority of fleet vehicle accidents are caused by A) Poor vehicle maintenance B) Brake failure C) Driver error D) Weather conditions

C

The right to invade another's interest to promote or protect one's own greater interests is A) Last clear chance B) Self-defense C) Legal privilege D) Immunity

C

The type of patent most appropriate for an invention or a process that has some usefulness is a A) Plant patent B) Design patent C) Utility patent D) Service patent

C

The way that an orgnization differentiates its services from its competitors services is a A) Trademark B) Descriptive mark C) Servicemark D) Trade dress

C

Which one of the following is a consequence that would likely result from legal liability arising from a breach of contract? A) Sanction B) Indirect loss C) Specific performance D) Ordered restriction

C

Which one of the following types of systems used in fleet safety can sense when a vehicle is traveling too fast in a curve and automatically apply the vehicle's brakes? A) Onboard tire inflation system B) Speed regulating system C) Stability control system D) Antilock brake system

C

A primary prevention measure for contractual liability is to have most contracts A) Be oral rather than written B) Reviewed by management before they are signed C) Meet American Bar Association guidelines D) Reviewed by counsel before they are signed

D

A primary risk control loss prevention measure for contractual liability is to A) Subcontract specific activities to transfer responsibility to others B) Eliminate written contracts to the extent possible in routine operations C) Use various techniques to address hazards on the premises D) Have most if not all contracts reviewed by counsel before they are signed

D

Compensatory damages as a consequence of legal liability might include A) Indirect losses and defense costs B) Specific and common damages C) Individual and broad damages D) Special and general damages

D

One reason that an organization might choose to protect an invention with a trade secret status rather than with a patent is that A) The invention could be easily reproduced through reverse engineering B) Theft of a trade secret is less likely than theft of a patent C) A trade secret status provides a higher degree of protection than a patent D) A patent requires disclosure of the details of the invention

D

Since there is no formal process for creating a trade secret, the risk control measures associated with trade secret loss control focus on maintaining A) Disclosure B) Legality C) Accountability D) Secrecy

D

The production phase of an organization's fleet life cycle involves A) Selecting the vehicles, operators, routes, schedules, and maintenance B) Using the vehicles to transport freight or passengers C) Determining what types of vehicles will meet an organization's needs D) Purchasing vehicles selected in the conceptual and engineering phases

D

The typical civil-law case is divided into three stages and they are A) Isolated meetings, written communications, and motions and judgements B) Mediation and arbitration, negotiation, and settlement C) Preliminary indictment, admissions, and jury deliberation and deliberation verdicts D) Pleadings, taking of evidence, and a decision by a judge

D

The unauthorized use of an individual's intellectual property is A) Contravention B) Fair use C) Laches D) Infringement

D

An organization wants to create a trademark for its line of products. Which one of the following risk control measures for trademarks should the organization use to avoid the possibility of infringing on someone else's trademark? A) Searches and watches B) Restrictive covenants C) Notice D) Registration

A

All-Sport Athletic Company spent $120 million to develop the rubber soles of its athletic shoes. The production method used to produce the rubber solesis a closely-guarded company secret. When asked to place a value on the rubber sole technology, All Sport's chief financial officer said, "$120 million." The intellectual property valuation method used by the chief financial officer is the A) Income approach B) Enterprise value approach C) Cost approach D) Fair market value approach

C

An implied contract is a contract that A) Can be rescinded at the election of one or both of the parties to it B) Is not a legally enforcable contract because it lacks one or more of the necessary requirements C) Has terms and intentions indicated by the actions of the parties to the contract and the surrounding circumstances D) Meets all of the requirements to be enforcable

C

An organization can be held legally liable because of which one of the following three major liability causes of loss? A) Negligence, intentional tort, and unintentional tort B) Strict liability, products liability, and ultra hazardous activities C) Torts, contracts, and statutes D) Public liability, workers' compensation, and watercraft liability

C

The cost of medical expenses and the restoration of lost wages are both examples of A) General damages B) Specific damages C) Punitive damages D) Special damages

D