BUL3320 Final Exam Review

landlord duties

-Duty to deliver possession -Quiet Enjoyment: exclusive use of the property without the interference of the landlord -duty to maintain the premises: duty to deliver habitable condition and a continued duty to maintain the habitable condition

GATT and WTO are founded on the following principles:

-Free trade. -Most favored nation (every country must treat every other country equally -national treatment (imported goods must be treated the same as locally produced goods after entering the country)

liability for defects

-If the bailment is for the sole benefit of the bailee, the bailor must notify the bailee of any known defects -In a mutual-benefit bailment, the bailor is liable not only for known defects but also for unknown defects that the bailor could have discovered with reasonable diligence -If the bailor is in the business of renting property, the bailment is probably subject to implied warranties

Islamic law

-Shari'a A system of laws based on the Muslim holy book of Islam, the Koran and the teachings and actions of the Prophet Muhammed. -much variation in the interpretation and practice

Duties of the Bailee:

-Strict liability: the bailee is strictly liable to redeliver the goods on time to the bailor, or to whomever the bailor designates. -Due care: the level of care required depends upon who receives the benefit of the bailment --(sole benefit of bailee: extraordinary care) --(mutual benefit: ordinary care) --(sole benefit of bailor: slight care/liable only for gross negligence. These are called gratuitous bailment.)

Hallmarks of Common Law

-adversarial process of dispute resolution presided over by an impartial judge -role of lawyers is to battle on behalf of the client by making the most persuasive arguments -doctrine of stare decisis (basing decisions off of prior cases) -use of a jury to determine questions of fact.

To ensure that you do not end up in a similar predicament, be sure to consider the following when you negotiate international deals:

-choice of law: which law governs? -choice of forum: Where will the case be heard? -choice of language and currency

Innkeepers

-most states have special innkeeper statutes that regulate liability -some statutes require guests to leave valuables in the inn's safe deposit box

Important principles of Islamic law:

-payment and collection of interest is prohibited because it causes unfair enrichment -concept of gharar prohibits any contract gain that is not clearly outlined at the time of the contract -many of its doctrines are tailored to promote honesty and transparency in business relationships -financial investments in companies or industries that do not align with Muslim values are also prohibited

securities act of 1934

-regulated the companies that issue the securities -required to file quarterly and annual reports with the SEC (10k, 10Q, 8K) -publicly traded companies made liable for any false or misleading material information or fraudulent statement

most important provisions of CISG:

-the CISG applies to contracts for the sale of commercial goods -the CISG applies automatically when contracts are formed between two parties located in different signatory countries (not dependent on nationality, but location) -Contracting parties can opt out by stating in their contract they exclude the CISG and elect some countries law -International sales contracts do not need to be in writing -contracting parties must be flexible and fair (good faith) -a buyer can avoid payment under a contract only after giving the seller notice and an opportunity to remedy -countries may use their own national laws to 1. replace some CISG provisions or 2. fill in the blanks on issues that the CISG does not cover at all.

patent application and issuance

-to obtain a patent, the inventor must file a complex application with the Patent and Trademark Office -if a patent request is denied, the inventor can appeal the decision to the Patent Trial and Appeal Board -during the process, 3rd parties hav ethe right ot submit evidence that the invention is not novel (still have the right to challenge the validity of the patent *9 months* after the patent is granted) -priority between two inventors: the first to file for the patent since 2013 -must apply for a patent within one year of selling the product commercially anywhere in the world

Infringement and Dilution of Trademarks

-to prove infringement suit, the trademark owner must show that the alleged infringer's trademark is likely to confuse customers about who has made the goods or provided the services -trademark dilution occurs in two ways: ~Blurring: lessening of the mark's capacity to identify ~Tarnishment: an association with unwholesome goods or services

main characteristics of the civil code tradition are:

-use of an inquisitorial process of dispute resolution (judge acts as interrogator and investigator) -courts base judgment on the code, statutes, and writings of law professors -does not use juries

Insolvency

-when liabilities exceed assets -day to day definition of insolvency: Do you have the ability to pay your debts as they come due?

General Agreement on Trade in Services (GATS)

A WTO agreement governing the international trade of services.

common carrier

A company that transports goods and makes its services regularly available to the general public -generally strictly liable for harm to the bailor's goods -governed by the Carmack Amendment -allowed to limit its liability by contract

International Court of Arbitration (ICA)

A forum for international dispute resolution, run by the ICC -hears over half of the world's private commercial disputes -decisions (called awards) can be enforced by domestic courts in more than 145 countries around the world including the US

Trademark Registration

A mark can be registered if in use or mark will be used within 6 months. tm: someone is claiming it as a trademark r (in the circle): registered with the government under the Lanham Act

Joey, a successful entrepreneur, has acquired many properties. His ailing grandmother finds the sound of crashing waves soothing, so he gives her his favorite beach house "for life." Joey has __________ in the beach house. a reversion a remainder a life estate no remaining interest

A reversion

Civil Law System

A system of law based on a very detailed set of written laws and codes. -more than 70% of the world's population is subject to civil law

extradition treaty

A treaty between states regarding the return of criminals who flee to another country's legal system

Herbert throws a large party in his apartment for friends he met at a jackhammer tradeshow. The friends bring their new jackhammers, which they demonstrate to each other at the party. Although they somehow manage to avoid damaging the apartment, they do make a great deal of noise that disturbs other tenants in the building. Herbert's landlord tells Herbert that he is evicting him. What will a court consider in determining whether the landlord can evict Herbert? Whether Herbert repeatedly holds such parties or otherwise regularly disturbs other tenants. Whether the lease includes a covenant that Herbert will not disturb others. Whether Herbert has unreasonably disturbed the other tenants. All of these.

All of these The court would likely first see if the lease contains any covenants about disturbing other tenants. If the lease does contain such a covenant, the court typically uses a test of reasonableness - have Herbert's actions reasonably or unreasonably disturbed other tenants. Whether Herbert creates such disturbances regularly would factor into this evaluation. Thus, all of the choices are relevant to the court's decision.

If a landlord refuses to maintain or repair the leased premises such that the tenant's use or enjoyment of the premises is affected, many states allow the tenant to: withhold rent, representing the decreased value of the premises. repair the defect and deduct the cost from the rent. vacate the premises if the defect amounts to a constructive eviction. All of these are correct.

All of these are correct

The Town of Creakyville does not own its train station but leases the property from Ted Truck. The station is very old and has a weak staircase. One day the staircase collapses, injuring several individuals. Who is likely liable for the injuries? Ted Truck The Town of Creakyville Both Ted Truck and the Town of Creakyville Neither Ted Truck nor the Town of Creakyville

Both Ted Truck and the Town of Creakyville. Ted Truck, as landlord, is likely liable for the injuries; however, since the train station is used for a public purpose, the Town of Creakyville, as tenant, is likely also liable.

Which of the following is considered by the IRS to be a sale of assets, subject to a tax on the value of the assets? Change from the corporate form to an LLC. Change from an LLC to a corporation. Change from a partnership to an LLC. All of these are correct.

Change from the corporate form to an LLC

Before undergoing surgery that in extremely rare cases could cause death, as could any surgery, Don, a guitarist, told his best friend Freddy, "This is all going to be just fine, but just in case I'm wrong, could you please take care of my guitar collection." The guitars were valued at over $150,000. Don gave Freddy the key to his house, where the guitar collection was. The surgery was successful, and a week later Don called Freddy for his guitars. Freddy claimed they were a gift. What should happen under the law? Don should get the guitars back. The guitars were a gift causa mortis and Don survived the surgery, automatically revoking the gift. Freddy should keep the guitars, because they were a valid gift inter vivos. Don should get the guitars back. Don did not gift the guitars causa mortis or inter vivos; he merely asked Freddy to watch the guitars while he went through surgery. Freddy should keep the guitars, because the key to the house was a constructive delivery of the guitars.

Don should get the guitars back. Don did not gift the guitars causa mortis or inter vivos: he merely asked Freddy to watch the guitars while he went through surgery

Example of Incoterms

FOB- means the buyer pays for transportation of the purchased goods

Lisa moved out of her old apartment six months ago. Lenny, her landlord has still not returned her security deposit or notified her of the cost of any damages he uncovered in the apartment. From this information, it is clear that Lisa is entitled to double or triple damages. True False

False In many states, Lisa may be entitled to double or triple damages: however, this is not true in all states

The burden of proof for negligence claim under bailment is the same as an ordinary negligence case. True False

False Once the bailor has proven the existence of the bailment and loss or harm to the goods, a presumption of negligence arises, and the burden shifts to the bailee to prove adequate care

The two principal requirements of the Foreign Corrupt Practices Act involve bribes and grease payments. True False

False The two principal requirements involve bribes and record keeping

When a driver parks and locks her car herself, there is still bailment between her and the owner of the lot. True False

False There is no bailment since the owner would still have control and possession of the key. By contrast, when a driver leaves her keys with a parking attendant, the lot clearly is exercising control of the auto, and the parties have created a bailment

When partitioning property, courts will first seek to sell the property and divide the proceeds from the sale equally among the co-tenants. True False

False the courts first seek to attempt a partition by kind, which would be dividing the land equally among the cotenants. If there is no fair way to divide the property, then the court will order the real estate sold and divide the proceeds equally

Zoning statutes are federal laws that permit local communities to regulate building and land use. True False

False Zoning statutes are state, not federal, laws

Constructive eviction occurs when a tenant moves off the premises in retaliation against the landlord. True False

False. A constructive eviction occurs when the landlord wrongfully performs or fails to perform any of the duties the lease requires, thereby making the tenant's further use and enjoyment of the property exceedingly difficult or impossible. Examples of constructive eviction include a landlord's failure to provide heat in the winter, electricity, or other essential utilities.

Sequenom developed a noninvasive prenatal diagnostic test to assess the risk of Down syndrome or other chromosomal abnormalities in fetuses. The test analyzes DNA from the fetus that is found in the mother's blood. Prior to this test, women had to undergo invasive tests that carried a slight risk of miscarriage. The PTO awarded Sequenom a patent on the test, but other diagnostic testing companies sued to invalidate the patent. Is Sequenom's patent valid?

In 2013, a California federal court invalidated Sequenom's patent on the basis that it covered a natural phenomenon—the presence of DNA from the fetus in the mother's blood. This was based on the Myriad precedent discussed in this chapter.

Acme believes that L'la, Inc., a competing company, is violating United States antitrust law based on its conduct in France. Acme has a good case if it can prove: L'la's conduct has a direct and substantial effect on the U.S. market. L'la's conduct was intended to affect the U.S. market. L'la's conduct was both intended to affect and had a direct and substantial effect on the U.S. market. Neither of these is correct since L'la is a foreign company.

L'la's conduct was both intended to affect and had direct and substantial effect on the US market.

To organize a _____, a person must have a charter. cooperative sole proprietorship limited liability company state-owned enterprise

Limited liability company

Olivia and Benjamin dated for a long time but got into a big argument on Valentine's Day in the middle of the local mall. In a fit of rage, Olivia threw a necklace Benjamin had just given her as a Valentine's Day gift right into the trash can in the middle of the mall. Joe was sitting nearby and watched it happen. Olivia marched away, with Benjamin following close behind trying to reach some peace with her. Joe jumped up and pulled the very nice necklace worth about $150 out of the trash. It was still in the box. As Benjamin returned to try to retrieve the necklace, he saw Joe and demanded he turn the necklace over to him. If Benjamin were to sue Joe, would he win? Yes, because Joe witnessed the incident and cannot claim not to have known about Benjamin's claim. No, because Benjamin gave away all of his possessory interest before Joe retrieved the necklace from the trash can. Yes, because there is no possible way for Joe to successfully assert adverse possession in such a short amount of time. No, because Benjamin waived his interest in the property when he followed Olivia away from the trash can

No, because Benjamin gave away all of his possessory interest before Joe retrieved the necklace from the trash can. Benjamin already gave away all of his interest in the necklace when he gave it to Olivia as a Valentine's Day gift. He had no superior right to the necklace over Benjamin, even though he originally paid for the item.

Kristen and Roberta own a property in joint tenancy. Kristen decides to sell her interest but tells Roberta not to worry because under survivorship, the interest will revert to Roberta when the new owner dies. Is Kristen correct? No, because the joint tenancy is severed once Kristen sells her interest. No, because Roberta is not Kristen's heir. Yes, as long as Kristen has a majority share. Yes, because survivorship continues after a sale.

No, because the joint tenancy is severed once Kristen sells her interest.

Allen sat at a booth at a restaurant and found a small purse seemingly wedged underneath the booth at his feet. It contained $200 and assorted items but no identifying information. The server saw Allen as he discovered it and immediately took it from his hands to keep behind the counter. Allen left his identifying information with the server so that he could recover the purse, contents and cash if no one claimed it. The server threw his contact information in the trash without informing the restaurant owner about him. After eighteen months, no one claimed the purse, cash and contents. Does Allen have a superior claim to the purse over the restaurant owner? Yes, because the server never informed the restaurant owner about Allen as she should have. No, because the property owner has superior title to the finder of both lost and mislaid items found there. Yes, because he was the finder of a lost object found on the ground. No, because the server quickly took the purse from Allen's hands and he did not protest her action, thereby abandoning any claim he may have had.

No, because the property owner has superior title to the finder of both lost and mislaid items found there.

Antonio, an accountant, rents an office from Ralph, an investment manager. Antonio asks Ralph to get a loose banister along the stairs in the office fixed. Ralph agrees and comes to fix the banister himself that afternoon. The next day, Antonio is walking up the stairs and the banister comes loose, sending him tumbling down the stairs. Who is liable? Antonio Ralph Antonio and Ralph Neither Antonio nor Ralph

Ralph Regardless of whether Ralph had a duty as landlord to make the repair, once he volunteers to fix the problem and does so, he becomes liable from any harm that results

Securities Act of 1933

Regulates the issuance of securities such as stock -everyone who issued stock in the United States was considered an issuer and every issuer had to register their stock with the SEC (unless the security was exempt) -it was a criminal violation to not register stock with the SEC and to make a material misstatement about your stock while selling it (everything you say must be truthful)

Susan and Brenda started a retail business called Eagle's Nest Hobbies. The business is operated as a partnership. Under partnership law, Susan is personally liable for any: business contracts entered into by Brenda. business debts, regardless of whether she or Brenda created the obligation. She would be liable for all of these. negligent act committed by Brenda in the scope of the business activity.

She would be liable for all of these

Much of the UN's work is through specialized agencies. Which of the following does not operate under the umbrella of the UN? The UN Commission on International Trade Law which aims to harmonize international business law through model legislation. The World Bank whose mandate is to end poverty by encouraging development and loans money to the poorest countries on favorable terms. The International Interest Fund which aims to set worldwide lending rates for a maximum return on commercial investments. The International Monetary Fund which aims to foster worldwide economic growth and stability.

The International Interest Fund which aims to set worldwide lending rates for a maximum return on commercial investments.

Chapter 7 Bankruptcy

The forfeiture of an individual's assets in exchange for the discharge of debts. - a court appointed trustee takes funds from liquidated assets and distributes them to the creditors based on the priority of their claims (secured creditors get paid first, unsecured creditors get paid what is left over) -fraudulent transfers are very common in bankruptcy transfers and if the debtor is found to be involved in any fraud they may be denied a discharged ("kicked out of bankruptcy")

A gift can be both inter vivos or causa mortis. True False

True

A latent defect is a dangerous defect that the landlord knows about but realizes the tenant will not notice. True False

True

A limited partner who negligently causes an accident in the company parking lot is personally liable for the damage. True False

True

At his son Joe's 21st birthday party, Bruce gives Joe a set of new car keys to the Ferrari in front of the house. Bruce has delivered the gift to Joe via constructive delivery. True False

True

In many states, landlords are required to compensate tenants for the interest earned on their security deposits. True False

True

The Constitution limits a government's exercise of its power of eminent domain. True False

True

When a bailment is created that requires the bailee to redeliver the goods to the bailor or someone the bailor designates, the bailee is strictly liable for the redelivery. True False

True

What organization can hear arguments from any signatory nation about tariff violations or nontariff barriers? WIPO CISG GATT WTO

WTO The World Trade Organization can hear arguments from any signatory nation about tariff violations or nontariff barriers

Walk Doosney owns an apartment building. Two tenants Mickey and Minnie complain, in writing, that the building is infested with rats and roaches. Mickey and Minnie both suffer from the health effects of living in and around such vermin. Can Mickey and Minnie win a suit against Doosney for interference with quiet enjoyment? Yes, even if they remain in the apartment. No, because the degree of cleanliness is the responsibility of the tenant. Yes, unless they remain in the apartment. No, if the apartment is habitable.

Yes, even if they remain in the apartment. A landlord's conduct may interfere with quiet enjoyment even when it is not so harmful as to force a constructive eviction.

General Agreement on Tariffs and Trade (GATT)

a 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions and bolstering commerce

Chapter 13 Bankruptcy

a reorganization form of bankruptcy for individuals that allows the debtors to keep their property and use their income to pay a portion of their debts over three to five years

World Trade Organization (WTO)

a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT) -its mandate is to stimulate international commerce and resolve trade disputes -empowered to settle trade disputes between its member states (order compliance and impose penalties in the form of trade sanctions.)

conventions

a treaty or binding agreement among national governments on a specific issue that affects all the participants

gift

a voluntary and unequivocal transfer of property form one person to another, without consideration 3 elements: donor intent, delivery of property to donee (physical or constructive), and acceptance of property by donee

A utility patent would not protect which of the following? Select all that apply. a. Asexually reproducible plant b. Design of a product c. Electrical invention d. Mechanical invention e. Machine f. Chemical invention g. Natural process h. Composition of matter

a. Asexually reproducible plant (plant patent) b. Design of product (design patent) G. Natural Process (non patentable)

A court may order that a copyright infringer: (select all that apply) a. destroy the infringing material. b. publish a written apology. c. be banned from applying for copyrights in the future. d. pay damages, profits earned, and attorney's fees to the author. e. spend time in jail. f. not to commit any further violations

a. destroy the infringing material d. pay damages, profits earned, and attorney's fees to the author. f. not to commit any further violations.

A person seeking to establish an ownership of land by adverse possession must prove that her use of the real property has been: (select all that apply) a. exclusive. b. continuous for the federally mandated minimum period of time. c. adverse to the true owner. d. open and notorious. e. continuous for the period required by local statute. f. consistent with the proper use of the land.

a. exclusive c. adverse to the true owner d. open and notorious e. continuous for the period required by local statute.

Most courts will imply the following provisions into every lease, even if they are not specifically stated in the lease: (select all that apply) a. tenant's right of quiet enjoyment. b. duty not to use premises for illegal purposes. c. warranty of habitability. d. constructive eviction. e. fair market rent. f. a maximum of a one year term. g. escalator clause.

a. tenant's right of quiet enjoyment b. duty not to use premises for illegal purposes c. warranty of habitability

Insider trading

an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends -the Securities Exchange act of 1934 requires public companies make extensive disclosures of material information by filing with the SEC -section 10b and rule 10b5 prohibit insiders of companies from trading securities based on undisclosed material information (this is a breach of fiduciary duty by the insider) -these provisions are in place to maintain the integrity of the market

To be able to prove that a landlord violated the implied warranty of habitability, a tenant must vacate the premises. a. True b. False

b. False The tenant need not vacate to prove the implied warranty of habitability. They must vacate if they wish to claim constructive eviction.

Laurel leaves her dress at the dry cleaner for 1-hour dry cleaning service. The dry cleaner will be liable to Laurel for damages she suffers if: (select all that apply) a. he exercises only ordinary care when cleaning the dress b. he fails to exercise extraordinary care when cleaning the dress c. he does not clean the dress as a reasonably prudent person would d. he accidentally gives Laurel's dress to another customer e. the dress is not cleaned for another 24 hours

c he does not clean the dress as a reasonably prudent person would d. he accidentally gives Laurel's dress to another customer e. the dress is not cleaned for another 24-hours

To be enforceable, a long-term residential real estate lease must _______ . a. require the tenant to obtain liability insurance b. define the tenant's duty to mitigate c. be in writing d. specify a due date for rent all of these

c. be in writing

A bailment without any agreement is called a: a. constructive bailment b. involuntary bailment c. both a and b d. neither of these

c. both a and b This can occur if you find something in your possession that is not yours. In this case, you are obligated to return the watch to the true owner, and until you do so, you are the bailee, liable for harm to the property.

Only _____ penalties are available under the Uniform Trade Secrets Act. corporal administrative criminal civil

civil Civil penalties, including money damages and attorney fees, are available under the Uniform Trade Secrets Act.

_____ are used to identify members of an organization. Trademarks Collective marks Service marks Certification marks

collective marks

The Agreement on Trade Related Aspects of Intellectual Property (TRIPS)

covers intellectual property administered by WTO -harmonized the international practice for patent lifes

Mark and Diana, two licensed dentists, started a dental clinic together. According to the written agreement, Mark and Diana held 50 percent of the business and equally shared the profits and liabilities. Two years later, Diana quit the partnership as she planned to start a new business. This event is called _____. conception dissociation expulsion dispossession

dissociation

What type of additional damages may a court award if a trade secret misappropriation is found to be willful or malicious? unjust enrichment damages double damages actual damages reasonable royalty

double damages Double damages are the type of additional damages that may be awarded if the trade secret misappropriation is found to be willful or malicious. A reasonable royalty is a type of damages that are available to any trade secret owner in a misappropriation.

tenant's duties:

duty to use premises for proper purpose: Lawful duty not to damage premises: anything beyond normal wear and tear duty not to disturb other tenants

contract carrier

engages in continuing agreements with particular customers, not the general public -does not incur strict liability (normal bailment rules apply)

fanciful mark

entirely made-up word

trade off of patents, copyrights, trademarks

exchanging limited protection for a set period for public disclosure

Bertha, from Chicago, traveled to San Francisco to attend a conference. Her sister, Martha, lives in San Francisco and consequently, Bertha made arrangements to spend a couple of days with her. The next morning sitting at the breakfast table, Bertha realizes that she packed a mismatched pair of shoes (one is black and the other is blue). Luckily, Martha wears the same size of shoes and lends Bertha a pair of black leather pumps. Bertha's duty of care would be a duty of: extraordinary care, because this is a bailment for the sole benefit of the bailee. ordinary care, because this is a bailment with both parties receiving mutual benefits. only slight care, because this is a bailment for the sole benefit of the bailor. None of these are correct.

extraordinary care, because this is a bailment for the sole benefit of the bailee

Patents

gives the inventors the right to prevent others from making, using, or selling their inventions for a limited time (20 yrs typically) -exclusive right by patent holder -infringement can be sued in federal court for enhanced (triple) damages -incentivizes research and development

WTO Appellate Body

hears the dispute and generally makes the final decision, subject to approval by the entire WTO

When a joint tenant dies: her interest goes to the majority owner. her interest in the property passes to the surviving joint tenants. her interest passes to her heirs as specified in her will. her interest goes to auction.

her interest in the property passes to the surviving joint tenants

A plaintiff in this country may sue a foreign government that has confiscated property in violation of _____________. a. domestic law b. international law

international law -provided that the property either ends up in the US or is involved in a commercial activity that affects someone in the US.

customary international law

international rules that have beccome binding through a pattern of consistent, longstanding behavior (payment due 30 days, etc.) -custom must be widespread and widely accepted, longstanding, and followed by nations out of a sense of obligation to each other -governed behavior on the battlefield and treatment of prisoners of war until the creation of the Geneva Conventions

Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention)

international treaty with 149 signatories -provides common rules for recognizing arbitration agreements -each country has their own specific requirements

A _____ is a partnership for a limited purpose. professional corporation benefit corporation cooperative joint venture

joint venture

Frank Furter rents a small building for his hot dog stand. The light fixture over the serving counter has a cable that is fraying. The frayed cable is an example of a(n): faulty defect. reasonable defect. latent defect. negligent repair.

latent defect

Billy is a goat herder. He tells his friend Mary, who raises sheep, that he is going to give her his prize-winning goat, Stewie, to diversify her flock; however, he tells Mary she'll have to wait until next week to take the animal. A week later Mary goes to Billy's farm to pick up Stewie. Billy: legally has to give her Stewie, the specific goat he promised. legally does not have to give Mary anything. legally has to give her a goat, but he can substitute a different goat for Stewie. legally has to give Mary either Stewie or cash of equal value.

legally does not have to give Mary anything

Digital Millenium Copyright Act (DMCA) of 1998

legislation passed to protect copyrighted digital data while also making it more widely available -illegal to delete copyright info such as name of author or title -illegal to circumvent encryption or scrambling technologies that protect copyrighted works -illegal to distribute tools and technologies to circumvent encryption devices -ISPs are not liable for posting copyrighted material if they are unaware the material is illegal, and they remove it promptly after receiving a "takedown" notice

mortgagee

lender -the party acquiring a security interest in property (bank)

trade secrets

less protection but no public disclosure -the company's job to protect it from disclosure

Augustine attended a seminar held at a Marriott Hotel. The sponsor of the seminar had rented the banquet room in which the seminar was held and requested the hotel to place a movable coat rack outside the room, in the public lobby. Augustine put his coat on the rack before entering the seminar room. When he tried to find his coat later, he realized that the rack had been moved down the lobby near an exit. His cashmere coat was missing. Claiming that the hotel was liable for the loss, Augustine sued the hotel. The most likely outcome is that the Marriot Hotel is: liable for the loss of the coat, because Augustine had delivered personal property expecting its return. not liable for the loss of the coat, because the hotel had not acted negligently. liable for the loss of the coat, because Augustine had not placed it in the hotel safe. not liable for the loss of the coat, because no bailment existed.

not liable for the loss of the coat, because the hotel had not acted negligently. Augustine did not deliver his coat to the hotel, nor did he make an agreement with the hotel to secure the coat's return. Instead, he simply left his expensive coat hanging on a rack in the public lobby of a hotel. He did so at his own risk, and the hotel was not liable.

Chapter 11 Bankruptcy

protects an insolvent firm from creditors during a period of reorganization to restore profitability -we will allow the debtor in possession (DIP) to continue to operate their business acting as a trustee -in exchange the creditors (a majority) must approve the debtors plan of reorganization -the creditors receive a part of the future earnings in order to pay the past debt

The tenant in the building Ursula owns has not been paying his rent for the last three months, so Ursula wants to evict him. What step is Ursula not required to take: Wait on a court hearing Prove the tenant has damaged the property Serve the tenant a termination notice Prove the tenant has failed to pay rent on time

prove the tenant has damaged the property

For some time before he died, Robert Zimmerman allowed his live-in girlfriend, Joan Robertson, to assist him with his financial affairs. Zimmerman and Robertson owned joint bank accounts through which Robertson had access to Zimmerman's funds. Robertson also had access to Zimmerman's safe-deposit box. Zimmerman gave Robertson a number of municipal bond certificates, stating only that Robertson was to put them "in safekeeping." The bonds had been placed in a series of large envelopes, each of which also contained a sheet of paper on which was written the name of one of Zimmerman's relatives. One of the envelopes contained bonds valued at $22,000 and contained a sheet of paper with Robertson's name on it. When Zimmerman died, Robertson distributed the envelopes to the people whose names were in the envelopes and retained the bonds in the envelope with her own name in it. The administrator of Zimmerman's estate claimed that all of the bonds belonged to the estate. Robertson asserted that the bonds were gifts. The court most likely held that: Zimmerman had made an effective gift, because the names in the envelopes showed donative intent and were delivered by Robertson as Zimmerman's agent. The bonds belonged to the estate, because the gifts were invalid as Zimmerman never expressed donative intent and did not actually deliver the gifts. Zimmerman had made an effective gift, because it was a gift causa mortis. Zimmerman had not made an effective gift, because the donees had not accepted the gifts before he died.

the bonds belonged to the estate, because the gifts were invalid as Zimmerman never expressed donative intent and did not actually deliver the gifts Giving the bonds to Robertson for "safekeeping" does not show present donative intent. Even if the fact that the papers contained the names of the relatives implied donative intent, the gifts still lacked a complete and unconditional delivery.

Securities Regulations in the United States was all caused by the Great Depression due to ____________ and _____________.

the collapse of the stock market and banking system

United Nations Convention on Contracts for the International Sale of Goods (CISG)

to make sales law more uniform and predictable and make international contracting easier -relaxes some of the formal rules found in contract law throughout the world, making it simpler for parties to form contacts and live by them -governs over two-thirds of the world's trade

Under tenancy in common, the co-tenants do not own a specific section of the property, but an equal interest in the entire property. True False

true

What nations have a legacy of common law?

-England -most former British colonies, including the US, Australia, Canada, and India

two methods of bankruptcy

-liquidation (chapter 7 liquidation /straight bankruptcy) *NO CLAIM TO FUTURE EARNINGS THE BUSINESS DISSOLVES* there is a "means test" that will prohibit debtors that earn above a certain threshold to file for chapter 7 bankruptcy -reorganization (chapter 11 rehabilitation the debtor and allow the debtor to continue to do business) must be done under a plan of reorganization (chapter 13 rehabilitation of the debtor/ consumer so they can continue to pay their debt) *the creditors are allowed to share in future earnings for reorganization types*

90% of all the personal property is purchased which is governed by contracts True False

True

CISG does not provide rules for determining whether a contract is fraudulent. True False

True This substantive rule is left to the discretion of each country

_______ is the right to enter and make limited use of another's property a. easement b. profit c. license

a. easement A profit is the right to enter and take something away from another's land, and a license is a temp right to enter another's property

trademark

affixed to goods in interstate commerce

ertha's neighbor, Ted, is a hoarder. He has accumulated piles of garbage in his yard. The garbage is attracting rodents to the area and the odor is stinking up the neighborhood. If Bertha and her neighbors take Ted to court, the court may issue what? An abatement A nuisance An eminent domain A deed

an abatement

Which law code tradition grew out of Roman Emperor Justininan's Corpus Juris Civilis? a. Common law b. customary law c. civil law

c. civil law This was a set of uniform laws and their uniform application

____ are words or symbols used by a person or organization to attest that products and services produced by others meet certain standards. Collective marks Service marks Certification marks Trademarks

certification marks

A plaintiff in the United States can sue a foreign country engaged in a __________ activity. A. commercial B. political C. None of these

commercial -if a business can engage in the activity, it is considered commercial. Political or state activities are something that only a government has the power to do (print money, make laws)

The Copyright Act protects: computer chips. computers. computer programs. computer symbols.

computer programs Protection extends to computer program codes and structure, as well as the look and feel of the program.

The Digital Millennium Copyright Act makes it illegal to: copy computer chips. delete copyright information. copy computer programs. develop certain types of computer programs

delete copyright information The Act was passed in response to copyright infringements which occurred over the internet.

A gift causa mortis does not become irrevocable until the donor _____ from the contemplated event, and it is _____ revoked if the donor survives. dies; automatically dies; not recovers; automatically recovers; not

dies: automatically

multilateral treaty

involves three or more countries

Bankruptcy Goals

1. trying to preserve the assets of the debtor so we can make an orgainized distribution to the creditors -trying to distribute the assets between the debtors and the creditors in a fair and equitable manner -as among the different classes of creditors (secured, unsecured, and judgment creditors) we are trying to distribute the assets fairly

mortgagor

A borrower in a mortgage loan transaction.

North American Free Trade Agreement (NAFTA)

Agreement that created a free-trade area among the United States, Canada, and Mexico. -replaced by the USMCA (united states-mexico-canada agreement)

Which statement is true about tenancy by the entirety? It only exists in about half of the states. It gives the right of survivorship to both the husband and wife. It does not allow either party to convey his or her interest. All of these are true.

All of these are true.

International Chamber of Commerce (ICC)

An international group of organizations that speak for the business practices of entities in more than 130 countries including INCOTERMS. - *does not make law* instead proposes rules whose adoption is voluntary -influence is widespread

arbitration

Binding process in which a professional arbitrator from outside the organization (usually a lawyer or judge) hears the case and resolves it by making a decision.

Gertrude is planning to rent out an office space she owns. She knows that the office has a pipe in the bathroom that leaks, making the bathroom floor slippery. Keeping in mind modern trends in the law, how can Gertrude avoid being liable if someone slips and falls on the wet floor? By notifying the tenant of the latent defect By fixing the leak By providing a mop or towels to dry the floor Any of these choices

By fixing the leak Under common law, landlords avoided liability by notifying tenants of latent defects; however modern trends have subjected landlords to the normal rules of negligence law. As a result, in many states the landlord would need to fix the problem in order to avoid liability.

How does a bankruptcy begin?

By voluntarily filing a petition in bankruptcy (filed by debtor) OR involuntarily forced by creditors filing the petition in bankruptcy -immediately upon filing of a petition in bankruptcy, an automatic stay is enacted

Closely held corporations are subchapter "S" corporations. True False

False

Only the federal government has the power of eminent domain. True False

False. The Supreme Court has held that state and local governments also have the power of eminent domain.

paris convention:

In its member nations, this extends national resident treatment of US citizens in member nations for patents, trademarks, and service marks. But you must file in every country in which you want to receive a grant of protection.

Uniform Foreign Money-Judgments Recognition Act

Many states have adopted this. provides that US courts will recognize foreign judgments if: -the award was based on a full and fair trial by an impartial tribunal with proper jurisdiction -the defendant was given notice and an opportunity to appear -the judgment was not fraudulent or against public policy -the foreign court was the proper forum to hear the case

In 2008, Morgan invents a new kind of clasp for bracelets that makes them easier to put on using one hand and begins selling them locally. In 2010, a major jewelry manufacturer sees one of Morgan's clasps and begins producing and selling them on a large scale and at a lower price than Morgan's. If Morgan files for a patent on her clasp, will her application be approved? Yes Yes, but Morgan will only receive a term of 18 years because she has already been selling for 2 No, because Morgan did not file within one year of her first sale of the invention No, because the invention was obvious

No, because Morgan did not file within one year of her first sale of the invention. Even if an invention meets all of the requirements for a patent, the patent will be denied if the inventor first sold the invention more than a year before filing. An inventor must apply for a patent within one year of selling the product commercially. The purpose of this rule is to encourage prompt disclosure of inventions. It prevents someone from inventing a product, selling it for years, and then obtaining a 20-year monopoly with a patent.

Guy and Peggy bought a racehorse together, agreeing to share all expenses and profits equally. There was no agreement as to the duration of the partnership. After two racing seasons, Peggy decided she was tired of the business and left the partnership. Is Guy correct in claiming Peggy's leaving was wrongful? Yes, Peggy was legally required to secure Guy's permission before leaving the partnership. Yes, Peggy had a legal duty to stay in the partnership unless she had a better reason for leaving, such as impossibility of continuation. No, in a partnership at will, a partner has the right to leave the partnership at any time. Yes, Peggy had a legal duty to stay in the partnership until a new partner could be found.

No, in a partnership at will, a partner has the right to leave the partnership at any time.

Pop-Cola Inc. is not a very successful company. Heads of Pop-Cola decide to hire a chemist from a rival company based in Colombia, Refresco. The chemist tells heads at Pop-Cola that the key ingredient in Refresco is a special leaf that grows in the mountains. After Pop-Cola learns the recipe for Refresco, can Refresco win a suit against Pop-Cola? No, unless the recipe was a secret. Yes, because the chemist cannot work at a rival company. Yes, unless Pop-Cola decides not to copy the recipe. No, if there is no advantage to Pop-Cola in possessing the recipe.

No, unless the recipe was a secret.

Betty sits down at a movie theater and finds a wallet on the top of her seat. It contains $1,000 but nothing else at all. Betty gave the wallet to the manager. After one year, no one came for the wallet -- except Betty who claims she is entitled to have the wallet, the cash and a finder's fee. To what is Betty most likely entitled? Nothing The wallet only, because it was found in a public part of the theater. A finder's fee The wallet and a finder's fee, because it was found in a public part of the theater.

Nothing It does not matter that the wallet was found in the part of the theatre accessible to customers. If a finder has discovered a lost item on land belonging to another, the landowner is probably entitled to keep it.

Inventors who pay a fee and file a _____ Treaty patent application are granted patent protection in the 151 member countries for up to 30 months. Patent Cooperation Berne Convention Patent Law Geneva Convention

Patent Cooperation The Patent Law Treaty (PLT) was adopted in 2000 with the aim of making national and regional patent applications and patent procedures more user- friendly.

The right of an owner to property upon the end of a lease is called a(n) _____. reversionary interest eviction interest easement interest bailment interest

Reversionary interest

An LLC charter must be filed with the _____ in the jurisdiction in which it is formed. Court Magistrate District Attorney cooperative Secretary of State

Secretary of State

Which of the following statements is not true concerning the International Court of Justice (ICJ)? The ICJ has no enforcement power, and only has jurisdiction over nations that voluntarily accept the ICJ's authority. The ICJ is also known as the World Court. Only a nation can be a party to litigation in the ICJ, so individuals and businesses must persuade their country to bring the lawsuit on their behalf. The ICJ is comprised of elected judges, one from each of the UN's member nations

The ICJ is comprised of elected judges, one from each of the UN's member nations. The ICJ is comprised of 15 elected judges from 15 countries that represent the world's principle legal systems

What law related to contracts governs lease agreements extending more than a year? The landlord-tenant relationship The Ark of the Covenant The Statute of Frauds The Ten Commandments

The Statute of Frauds The Statute of Frauds is the law governing leases of more than a year. For example, the statute requires that such leases be in writing.

Dwelling Investment Corporation owns several apartment buildings in two states. Regarding standards for the maintenance of the buildings, Dwelling should consult: the appropriate city statutes only. the Uniform Landlords' Maintenance Manual. the appropriate city ordinances and state statutes. the appropriate state statutes only.

The appropriate city ordinances and state statutes

George wants to sell franchises. What must he include in the Franchise Disclosure Document (FDD)? -Exact costs of initial investment -Any current litigation against George -How many franchisees have gone out of business in the past 10 years -The number of franchises in operation

The number of franchises in operation

extraterritoriality

The power of one nation to impose its laws in other countries -many US statues regulate conduct outside the country

discharge in bankruptcy

The release of a debtor from all debts that are provable, except those specifically excepted from discharge by statute. -nondischargeable debts: student loans (unless you can meet a hardship test), fraudulent debts, taxes, fines, penalties, court ordered damages, child support, alimony, violations of the securities regulations law, any intentional tort

A partnership by estoppel can occur when a third party relies on the statement "Ken and I are partners." True False

True A partnership by estoppel refers to a person who is not technically a partner, but can still be held liable as one for any debts or damages incurred by a business or owed to a third party.

Anyone who interferes with the bailee's rightful possession is liable to them. True False

True Even a bailor is liable if he wrongfully takes back property from a bailee.

Bankruptcy is subject to federal jurisdiction. True False

True It is an exclusive jurisdiction with the federal courts (United States Bankruptcy court)

An arbitral award will generally be enforced in the US if it is enforceable under the local law of the country where the award was granted True False

True t is enforceable under the local law of the country where the award was granted; The arbitral tribunal had proper jurisdiction; The defendant was given notice of the arbitration and an opportunity to be heard; and Enforcement of the award is not fraudulent or contrary to public policy.

According to the _____ Act, anyone who misappropriates a trade secret is liable to the owner for actual damages, unjust enrichment, or a reasonable royalty. Economic Espionage Espionage Implied Trade Secrets Uniform Trade Secrets

Uniform Trade Secrets Actual damages, unjust enrichment, or a reasonable royalty are civil penalties that may be recovered under the Uniform Trade Secrets Act.

When is a treaty considered adopted?

When those who have drafted it agree that it is in final form

Andy had a list of customers. Tom and Sally worked for Andy. Andy offered to sell them the business - they agreed. However, instead of buying the business, Tom and Sally simply took the customer list and stole all of Andy's clients. Did Tom and Sally violate any rights of Andy? No, because Tom and Sally are now competitors. Yes, unless Andy gave his employees access to the client list. Yes, because Andy's list was his property. No, because Andy cannot show that the list had any value.

Yes, because Andy's list was his property

Billy bought a franchise. His agreement demanded that he pay the franchisor over $10,000 per month. Is Billy liable if he cannot pay the month fee? No, if sales are not high enough. No, because the franchisor bears the risk. Yes, a contract is a contract. Yes, unless the franchisor induced the contract through fraud.

Yes, unless the franchisor induced the contract through fraud.

In a state with a ten year statutory period for adverse possession, Matilda moved into a vacant, foreclosed house. She had the utilities turned on, mowed the lawn regularly and lived in the house for the ten year period. Does she now own the house? No, she has a co-tenancy with the prior owner. No, the bank has a superior right. Yes, because she lived in the house alone. Yes, via the doctrine of adverse possession.

Yes, via the doctrine of adverse possession. Matilda had exclusive, open and notorious possession adverse or hostile to the claim of the owner continuously for the ten-year statutory period.

In order to obtain limited liability, Tom and Doris formed an LLC to operate their catering business. They sometimes deposited the proceeds from catering jobs into their personal checking accounts. If they needed to pay personal bills and were short of funds, they used the business account. If creditors of the business cannot get payment for their invoices, is there anything a court can do to help the creditors? No. Under any circumstance, owners in an LLC have no liability to anyone. No. There is no law that provides that the LLC members cannot comingle funds. No. There is no such thing as piercing the company veil of an LLC. Yes. They can pierce the company veil of an LLC.

Yes. They can pierce the company veil of an LLC. It is common under corporate law for shareholders who do not comply with the technicalities of the law to be held personally liable for the corporate debts. This is called "piercing the company veil." Similarly, the members of an LLC may be held liable if they do not observe the formalities required for the business. Here, Tom and Doris were comingling business and personal funds. Courts would be likely to disregard the LLC form and hold Tom and Doris personally liable for the business debts.

Franchise Disclosure Document (FDD)

a detailed description of all aspects of a franchise (all material facts) that the franchisor must provide to the franchisee at least 14 calendar days before the franchise agreement is signed -must provide info on history of franchise, any litigation, bankruptcy filing, restrictions on products and customers, territory limitations, business continuity (right to renew, selling, termination), a list of current franchisees and those that have left in the last three years, audited financials for the franchisor, a sample set of the contracts that the franchisee is expected to sign

Rob deeds a plot of timberland to State University, which pays nothing to Rob for the property. Rob has given the university: the power of eminent domain. a fee simple absolute. a leasehold estate. a life estate.

a fee simple absolute

notice to quit:

a landlord's notice terminating a tenancy

Utility Patent

a patent that protects the functionality of the invention -mechanical invention -chemical invention -electrical invention -process -machine -composition of matter

bilateral treaty

a treaty made between two nations

If a country refuses to comply with the WTO's ruling, what action can the affected nation(s) take? a. imposing punitive tariffs b. none c. restriction of trade agreements d. legal damages

a. imposing punitive tariffs and sanctions

Which of the following are benefits of registering a trademark? Select all that apply. a. It notifies the public that the mark is in use. b. It makes the mark valid nationally. c. It makes the mark valid locally. d. No one may challenge the mark. e. It allows for higher damages for infringement than under common law. f. The holder of the mark automatically receives royalties whenever the mark is used in the country.

a. it notifies the public that the mark is in use b. it makes the mark valid nationally. e. it allows for higher damages for infringement than under common law.

A landlord evicts a tenant when the landlord: (selects all that apply) a. physically prevents the tenant from possessing the premises. b. substantially interferes with the tenant's use and enjoyment of the premises. c. fails to perform minor repairs in common areas. d. transfers ownership of the property that includes the rented premises to someone else. e. ever allows others to access the premises. f. increases the rent

a. physically prevents the tenant from possessing the premises. b. substantially interferes with the tenant's use and enjoyment of the premises.

A zoning board will consider which of the following when deciding whether or not to grant a variance? Select all that apply. a. The nature of the community b. Whether other towns/cities nearby allow the type of project or building being proposed c. Response of the community d. How long the property owner has owned the property at issue e. The cost of the proposed project or building f. The reason the owner claims to be harmed by the ordinance

a. the nature of the community c. response of the community f. the reason the owner claims to be harmed by the ordinance

When deciding whether to enforce exculpatory clauses, a court will consider: (select all that apply) a. whether the clause was clearly visible and/or acknowledged by the bailor. b. the value of the property at issue. c. whether the clause excuses intentional torts and/or reckless behavior. d. the bargaining power of the bailor and bailee. e. whether the bailor had insurance on the property.

a. whether the clause was clearly visible and/or acknowledged by the bailor c. whether the clause excuses intentional torts and/or reckless behavior d. the bargaining power of the bailor and bailee

Regional trade agreements (RTAs)

agreements among three or more countries in a region to reduce barriers to trade among themselves -today these cover more than half of international trade

In the case of tenancy in common, who has the right to partition the property? Partitioning is not allowed under the law. All co-tenants have an absolute right to partition. The majority owner has an absolute right to partition. Partitioning requires a unanimous vote of the co-tenants.

all co-tenants have an absolute right to partition

Real property consists of: land. buildings. all of these choices. plants.

all of these choices

protocol

amendment to a treaty

Under a tenancy at sufferance, a landlord is entitled to either evict a tenant or receive rent from the tenant. a. True b. False

b. False The landlord has the option of seeking to evict the tenant or of forcing the tenant to pay a use and occupancy fee (not rent) for as long as she stays.

To take effect in the US, treaties must be approved by at least ______ of the _______. a. simple majority, House of Representatives. b. two-thirds, Senate c. Two-thirds, Congress

b. Two-thirds, Senate

A work becomes copyrighted: a. when the author files with the Copyright Office of the Library of Congress. b. automatically when it is put into a tangible form. c. whenever the copyright symbol (©) is attached to the work. d. when the Copyright Office approves a copyright application.

b. automatically when it is put into a tangible form.

a decision by a court outside a country is legally valid inside refers to _______. a. foreign enforcement b. foreign recognition

b. foreign recognition Foreign enforcement means that a judgment rendered outside a country can be collected inside, just as an internal judgment

A treaty _________ when a nation indicates its intent to be bound by it. a. is adopted b. is ratified c. enters into force

b. is ratified A treaty enters into force when it becomes legally binding on its signatories. Can be a specified date or date when the treaty receives a certain number of ratifications.

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

d. making structural repairs to the apartment

Patents are handled by both state and federal government true false

false Only the federal government (the Patent and Trademark Office) has power over patents. It is a right given to the federal government in the constitution

The Secretariat is the UN body charged with maintaining international peace True False

false The Security Council is charged with maintaining international peace. The Secretariat is headed by the Secretary General, administers the day-to-day operations of the UN.

Tenancy in common limits the ownership of property to 22 co-tenants. True False

false.

An ownership interest in land that provides the owner the greatest possible aggregation of rights, privileges, and power is known as a: fee simple absolute. fee simple. fee. none of these choices.

fee simple absolute

exculpatory clause:

generally void in residential leases

Once a _____ goes public, it loses its favorable tax status and is taxed as a corporation, not as a partnership. limited liability company sole proprietorship state-owned enterprise cooperative

limited liability company

When a trademark becomes a generic term, the trademark holder: loses common law rights, but can still enforce the trademark under federal law. can sue anyone who continues to use the trademark in an infringement action. must renew the name with the U.S. Patent and Trademark Office. loses trademark protection.

loses trademark protection "Zipper," "escalator," "aspirin," and "thermos" are all examples of trademarks that have become generic terms because their names are no longer distinctive. Once a name is generic, the owner loses the trademark.

the economic espionage act of 1996

makes it a *criminal offense* to steal (or attempt to steal) trade secrets for the benefit of someone other than the owner, including *for the benefit of any foreign government

accession

occurs when one person (or nature) uses labor, materials, or both to add value to personal property belonging to another person

WTO's Dispute Settlement Body (DSB)

panel that consists of three nations uninvolved in the dispute -prepares a report and generally approves the report unless either nation appeals

Automatic stay

prohibits creditors from collecting debts that the bankrupt incurred before the petition was filed since their debt will be paid through the bankruptcy -all creditors will receive a notice that the petition in bankruptcy has been filed

Foreign Sovereign Immunities Act (FSIA)

provides that American courts generally cannot hear suits against foreign governments -three possible exceptions

easement by implication

results from surrounding circumstances that indicate that the parties must have intended an easement

bailment

rightful possession of goods by someone who is not the owner bailor- delivers the goods bailee- one in possession -generally created by agreement

Blue Sky Laws

securities that are being regulated by the states -in 1996 Congress passed a statute that preempted state securities law (basically stating that if we are regulating securities under these statutes then states cannot regulate them) -now these laws only apply to securities that would be otherwise unregulated

copyright

similar to a patent but it applies to works not inventions -protect the way the ideas are presented, not the ideas themselves -need not be novel -an expression is copyrighted as soon as it is in tangible form

Trademark Law Treaty

simplifies and harmonizes the process of applying for trademarks around the world

Trademark law Treaty

simplifies and harmonizes the process of applying for trademarks around the world

Paris Convention

six month grace period to file in other countries with the same original filing date once registering in a signatory country

To form an LLP, the partners must file a statement of qualification with _____. the court the district attorney state officials the members of the firm

state officials

One of the ways a trademark owner can prove infringement is by establishing that others have used the mark in a way that ________.

tarnishes the mark by association with unwholesome goods or services

Tom rents a store in a shopping mall. A patron is walking into the store from the mall hallway, when a pane of glass from the ceiling falls on her head. Who is liable for the patron's injury? The owners of the mall Tom The customer All of these choices

the owners of the mall because the injury occurred in the common area

freehold estate (fee simple absolute):

the right to possess land forever

sovereignty

the supreme and absolute authority within territorial boundaries -under this principle, states are prohibited from interfering in each other's legislative, administrative, or judicial activities

A lawsuit is permitted against a foreign country that _________ its immunity.

waives - a wavier is to voluntary give up a certain protection

jus cogens

when rule of customary international law becomes a fundamental legal principle across all nations, it cannot be changed by custom or practice

Unlimited Rays, an automotive sunroof manufacturer, teamed up with Dynamic Car Manufacturers to provide Dynamic with sunroofs for its automobiles. Dynamic did not pay the supplier of the vents used for the air conditioning system in its cars. The supplier sues both Unlimited Rays and Dynamic. Which of the two organizations is liable to the supplier for the unpaid a/c vents? Unlimited Rays only because it indemnified Dynamic when the two businesses entered into a business arrangement. Either Unlimited Rays or Dynamic, whichever has more profits, because they are now one business organization. Both Unlimited Rays and Dynamic because they are in a joint venture. Dynamic only because this is not an obligation which arose as part of the joint venture's activities.

Dynamic only because this is not an obligation which arose as part of the joint venture's activities Unlimited Rays and Dynamic have entered into a joint venture but they have retained their separate identities. With a joint venture, the creditor of one company cannot pursue a claim against the other company for debts outside the scope of the venture.

A college professor who distributes copies of a copyrighted journal article without permission from the journal would absolutely be violating the federal Copyright Act. True False

False The doctrine of fair use allows limited use of copyrighted material for the purpose of scholarship. However, the materials must be brief and the professor's action must be spontaneous. A Supreme Court decision banned the practice of preparing lengthy course packets of copyrighted material without permission of the authors.

LLCs are regulated by the Uniform Limited Liability Company Act which has been enacted by all of the states. True False

False The Uniform Limited Liability Company Act was an attempt to standardize the law related to the creation and regulation of LLCs. However, it has not been enacted by the majority of states.

Drake and Holly agree to jointly run the hospital's fundraiser. Even if they don't have a formal, written agreement, they have formed a partnership. True False

False.

Business methods are generally patentable, but the courts have developed a complex system of qualifications that limit the availability of business method patents. Ture False

False. Business methods are generally patentable, but the courts have not precisely explained them.

The Economic Espionage Act of 1996 makes a person civilly liable for attempting to steal trade secrets for the benefit of someone other than the owner. a. True b. False

False. which makes it a criminal offense to steal (or attempt to steal) trade secrets for the benefit of someone other than the owner, including for the benefit of any foreign government.

Which of the following is true of professional corporations (PC)? If a member of a professional corporation commits malpractice, the corporation's assets and the personal assets of the innocent members are at risk. The required legal technicalities for forming and maintaining a professional corporation are inexpensive but time-consuming. A professional corporation is not a separate taxable entity. Generally, the members of a professional corporation are not personally liable for the contract debts of the organization.

Generally, the members of a professional corporation are not personally liable for the contract debts of the organization.

A copyright in the U.S. is valid until 70 years after the death of the work's last living author. If the author is a corporation, a copyright is valid for 95 years from publication or 120 years from creation, whichever is shorter. True False

True More than 300 years ago, on April 10, 1710, Queen Anne of England approved the first copyright statute. Called the Statute of Anne, it provided copyright protection for 14 years, which could be extended by another 14 years if the copyright owner was still alive when the first term expired.

An author of a novel who fails to register the work with the Library of Congress cannot take any legal action for copyright infringement. True False

True While a work is automatically copyrighted once expressed in tangible form, registration with the Copyright Office of the Library of Congress is necessary if the holder wishes to bring a lawsuit to enforce the copyright.

Incoterms

-A series of three-letter codes used in international contracts for the sale of goods -specify how the buyer and the seller share the cost of freight and insurance in an international transaction and at which point the buyer takes title to the goods.

Which of the following are reasons that a trademark would NOT be legally valid? Select all that apply. a. The mark is offensive or immoral. b. The mark is not an creative symbol, but rather a description of the product. c. The mark is too similar to an existing trademark. d. The mark has no relationship to the product. e. The mark is a surname. f. The mark is the same as the generic name for the product. g. The mark is not appealing to consumers.

a. the mark is offensive or immoral c. the mark is too similar to an existing trademark (Pledge/Promise) e. the mark is a surname. (exceptions- Dell, Ford, Heinz since they have become synonymous with the product) f. the mark is the same as the generic name for the product. (Kleenex, Zipper) -alongside these a mark cannot be geographical or deceptive

Misappropriation or theft of a trade secret can result in: liability to the owner for actual damages, unjust enrichment, or a reasonable royalty under the Uniform Trade Secrets Act. liability to the owner for double damages and attorney's fees for willful or malicious misappropriation. criminal penalties under the Economic Espionage Act. all of these.

all of these While these are potential penalties under the Uniform Trade Secrets Act, the best answer includes all the choices.

An invention must be which of the following to receive a patent? Select all that apply. a. A design b. Novel c. Previous sales or other evidence of commercial appeal d. Process e. Patentable subject matter f. Nonobvious g. Useful h. Business method i. Originating in nature j. Plant

b. Novel (not already in public use) e. Patentable subject matter (math) f. Nonobvious (unexpected) g. Utility (useful)

Alfred's Drugs and Walkabout Fitness enter into a joint venture for a fitness awareness wristband with the Alfred's logo. The supplier of the rubber used to make the wristbands has not been paid for the last three shipments of rubber. Which of the parties is responsible for the unpaid bills? Alfred's Drugs Walkabout Fitness Both Alfred's Drugs and Walkabout Fitness Neither, because the fitness wristbands did not sell and were a marketing flop.

both Alfred's Drugs and Walkabout Fitness Both parties are liable for the unpaid debts for materials used to manufacture the wristbands because this debt was incurred as part of the activities of the joint venture.

Drexel operated his construction and remodeling business as a sole proprietorship. His business has been growing and he has several employees. Of the following, what is the best form of business for Drexel? Corporation Sole proprietor Limited liability partnership General partnership

corporation This would be the best form of business from the list presented. For Drexel, a sole proprietorship could be disastrous because his construction company will have substantial expenses and a large number of employees. If an employee causes an injury, Drexel might be personally liable. And if his business fails, the court would liquidate his personal assets. He would be better off with a form of organization that limits his liability, such as a corporation or a limited liability company.

The Franchise Disclosure Document (FDD) does NOT have to provide information on _____. litigation with franchisees earnings required advertising expenses business continuity

earnings A franchisor need not disclose the amount of previous earnings when providing a potential franchisee with an FDD.

The ___________________ is an important exception to the limited use of copyrighted material without permission of the author..

fair use doctrine Because the period of copyright protection is so long, certain important exceptions have been carved out, including the fair use doctrine. The fair use doctrine is important because it permits limited use of copyrighted material without permission of the author. The purpose and character of the use, nature of the copyrighted work, and the amount and proportion of the work that is used, and the effect of the use upon the potential market, all are considerations when determining whether a use of copyrighted material is protected as fair use.

In the documentary movie Expelled: No Intelligence Allowed, there was a 15-second clip of "Imagine," a song by John Lennon. The purpose of the scene was to criticize the song's message. Lennon's wife and sons, who held the copyright, sued to block this use of the song. Under what theory did the movie makers argue that they had the right to use this music? Fair Use Doctrine It is already in the public domain. First Sale Doctrine There is no available defense.

fair use doctrine The fair use doctrine permits limited use of copyrighted material without permission of the author for purposes such as criticism, comment, news reporting, scholarship, or research.

Sovereign immunity

holds that the courts of one nation lack the jurisdiction (power) to hear suits against foreign governments -most nations respect this principle

The distinctive trait of a Subchapter S corporation is: its organizational structure. its treatment of shareholders for income taxation purposes. its small cost of formation. its requirement of restrictive transfer rights of the shares.

its treatment of shareholders for income taxation purposes. Subchapter S corporations were created to encourage entrepreneurship by offering tax breaks. Subchapter S corporations have flow-through taxation, and the owners pay taxes at their individual tax rates. There is not a separate tax on the corporation itself.

The quality of the franchise is guaranteed if the franchisor follows the FTC's rules in its franchise disclosure document to prospective franchisees. True False

False

Harriet Smith owns Glamorous Interiors, a small interior decorating business. Ted hires Glamorous Interiors to stage his home before he puts it on the market for sale. While setting up the staging, one of the employees negligently knocks over a lit candle and sets the house on fire. Glamorous Interiors refuses to pay Ted for his loss. Ted sues Glamorous Interiors and Harriet individually. The court awards judgment to Ted. Which of the following assets can be used to satisfy Ted's judgment? Glamorous Interiors' accounts receivable. Inventory of Glamorous Interiors. Harriet's home. All of these are correct.

All of these are correct

A patent holder has the right to prohibit others from using the patented invention but cannot recover money damages for patent infringement. a. True b. False

False A holder can prohibit others from using any product that is substantially the same, license the product to others for a fee, and recover damages from anyone who uses the product without permission.

To safeguard national security and maintain the nation's industrial and financial edge, Congress passed the _____ Act of 1996, which makes it a criminal offense to steal trade secrets for the benefit of someone other than the owner, including for the benefit of any foreign government. Electronic Communications Privacy Uniform Trade Secrets Economic Espionage Foreign Intelligence Surveillance

Economic Espionage To safeguard national security and maintain the nation's industrial and economic edge, Congress passed the Economic Espionage Act of 1996, which makes it a criminal offense to steal (or attempt to steal) trade secrets for the benefit of someone other than the owner, including for the benefit of any foreign government.

arbitrary mark

Existing words, but have no relation to goods or services (Trademark) - "Apple" for electronics

Rick wrote a song entitled "Wonderful." At the bottom of the first page of music he wrote "© 1990 by Rick Reed." Four months later, a local band was playing his song at a bar. Rick felt that the bar was an inappropriate setting for his music. What is his remedy? He has no recourse. Even if he did not register his copyright, he could bring an action for copyright infringement. If he registered his copyright he can bring an action for copyright infringement. None of these are correct.

If he registered his copyright he can bring an action for copyright infringement. Musical works are protected by the Copyright Act. As a creator of the song, Rick has the benefit of copyright protection. Rick has provided public notice of his copyright by indicating the copyright symbol, the date, and his name on the music. If he has registered the copyright with the Library of Congress, Rick's recourse is to bring an action for copyright infringement against the band for using the music without permission. Rick will be entitled to an injunction ordering the band to refrain from playing his song and possibly damages and profits earned by the band's use of the song.

Alan Smith joined with two other friends to open a kosher delicatessen, Maven's Court. However, the deli failed after barely a year in business. One supplier sued for overdue bills. Of the following, what form of organization would have been the best choice for Maven's Court? Corporation Limited Liability Company Sole proprietorship General partnership

Limited Liability Company An LLC offers the limited liability of a corporation whereas the members of an LLC are neither liable for the debts of the business nor subject to double taxation.

After Edward Miller left his job as a salesperson at the New England Insurance Agency, Inc., he took some of his New England customers to his new employer. At New England, the customer lists had been kept in file cabinets. The company did not restrict access to these files. The lists were not marked "confidential" or "not to be disclosed." Did Miller steal New England's trade secrets? Yes, because it was kept in a file cabinet. Yes, because the list belonged to New England. No, because customers' lists are never considered a trade secret. No, because New England did not take steps to protect it as a trade secret.

No, because New England did not take steps to protect it as a trade secret. In this case, mere ownership of the customer lists would not protect them as trade secrets. 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. 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?

Wanda works for a major pharmaceutical company, Big-Drugs. Big-Drugs makes AIDS drugs and encourages doctors and governments to give the drugs to pregnant women who are HIV positive. Wanda learns from internal documents that the drugs have no medical efficacy and, in fact, are associated with increasing the infant mortality rates in the babies of women who take Big-Drugs "medicines." If Wanda takes these documents and gives them to the ambassadors of various African nations, can she be convicted for violating the Economic Espionage Act of 1996? Yes, because Wanda worked for Big-Drugs. No, if Wanda only wants to help reduce unnecessary infant mortality. No, because Wanda is not selling anything. Yes, if Big-Drugs loses money due to Wanda's disclosures.

No, if Wanda only wants to help reduce unnecessary infant mortality Based on the given facts, Wanda cannot be convicted for violating the Economic Espionage Act of 1996. The documents do not contain any trade secrets.

Leonard C. Blum, an attorney, was negligent in his representation of Louis Anthony, Sr. In settlement of Anthony's claim against him, Blum signed a promissory note for $10,400 on behalf of his law firm, an LLC. When the law firm did not pay, Anthony filed suit against Blum personally for payment of the note. Is a member personally liable for the debt of an LLC that was caused by his own negligence? Yes, unless the articles of organization limits his liability. No, regardless of his actions, Blum cannot be personally liable for this debt. No, Blum is only liable for intentional torts. Yes, if the LLC was a sham.

No, regardless of his actions, Blum cannot be personally liable for this debt. Although Blum would have been liable for his own negligence, Anthony is suing him for payment of a promissory note signed by the LLC. As a member, Blum is not liable for the debts of the LLC.

Victoria's Secret, a well-known lingerie company, found out that a man named Victor Moseley was running a small store in Kentucky named "Victor's Little Secret." Moseley's shop sold clocks, patches, temporary tattoos, stuffed animals, coffee mugs, leather biker wallets, Zippo lighters, diet formula, jigsaw puzzles, handcuffs, hosiery, greeting cards, incense burners, car air fresheners, sunglasses, jewelry, candles, and adult novelties. Women's lingerie represented about 5 percent of its sales. Does Victoria's Secret have a valid intellectual property claim? Yes, Victor picked his store name solely to capitalize on the similarities of the names. No, if the lingerie sales at Victor's only made up five percent of all his sales. No, unless Victoria's Secret's reputation was "tarnished" by association with the unwholesome goods sold by Victor. Yes, because the names of the stores were so similar.

No, unless Victoria's Secret's reputation was "tarnished" by association with the unwholesome goods sold by Victor. No, Victor is not liable, unless Victoria's Secret's reputation was "tarnished" by association with the unwholesome goods sold by Victor. The Federal Trademark Dilution Act of 1995 (FTDA) prevents others from using a trademark in a way that (1) dilutes its value, even though consumers are not confused about the origin of the product; or (2) tarnishes it by association with unwholesome goods or services.

Mrs. Meadows opened a biscuit shop called The Biscuit Bakery, LLP. The business was not incorporated. Whenever she ordered supplies, she was careful to sign the contract in the name of the business, not personally: The Biscuit Bakery, LLP, by Daisy Meadows. Unfortunately, she had no money to pay her flour bill. When the vendor threatened to sue her, Mrs. Meadows told him that he could only sue the business because all the contracts were in the business's name. Mrs. Meadows is a member of a limited liability partnership. Is Mrs. Meadows liable for the debt to the vendor? Yes, because she is a partner. Yes, if she authorized the loan. No, because partners in an LLP are never liable for the debts of the partnership. No, unless she agreed to be liable.

No, unless she agreed to be liable. In an LLP, the partners are not liable for the debts of the partnership. Mrs. Meadows is not liable unless she agreed to be liable for the debt.

While in college, David invented a new and useful machine to make macaroni and cheese (he called it the "Mac 'n' Cheeser"). It was like nothing on the market, but David did not apply for a patent. At that time, he offered to sell his invention to several kitchen products companies. His offers were all rejected and he never sold the invention. Years later, he decided to apply for a utility patent. Is David entitled to a utility patent?

No, while the Mac n' Cheeser was new, useful, and nonobvious at the time it was invented, David's disclosure to the kitchen products companies years before renders it not novel now. Inventors have a grace period of one year once disclosure is made to apply for a patent. That time lapsed. Patent rejected.

Waffle Shoppe, Inc. sells a local franchise to Dave and Sharon Sanders. After three years, Waffle Shoppe sells another franchise in the same town to Bill and Fran Copeland. Bill and Fran open their Waffle Shoppe across the street from Dave and Sharon, cutting their income in half. The franchise agreement does not address the locations of the local franchises. Dave and Sharon sue Waffle Shoppe for breach of contract. Dave and Sharon maintain that Waffle Shoppe had a duty not to sell a second franchise so close to them as to interfere with their customer base. Are Dave and Sharon correct? Yes. Waffle Shoppe violated an express contractual obligation to its franchisees by selling a second franchise with a location which would compete with a pre-existing location. Yes. Waffle Shoppe is contractually required to investigate new locations before selling the franchise. No. Waffle Shoppe did not contractually agree to limit the sale of franchises in Dave and Sharon's area. Yes. Waffle Shoppe cannot do business in a manner which forces franchisees to compete with each other for business.

No. Waffle Shoppe did not contractually agree to limit the sale of franchises in Dave and Sharon's area. The franchise purchase contract is silent as to the sale of additional franchises in the same geographical area.

Harry and Sally want to form a partnership. What is necessary to create a legal partnership between them? A formal filing with the Secretary of State A written document Nothing Overt consent from the two

Nothing Nothing is legally necessary to create a legal partnership, although typically there is an agreement of some sort. The agreement need not be in writing.

What is not a common characteristic of close corporations? Protection for shareholders who vote against the majority Preferences for current shareholders Power to dissolve the corporation Requirements for a board of directors

Requirements for a board of directors Although the provisions of close corporation statutes vary from state to state, they tend to have certain common themes: (1) protection of minority shareholders; (2) transfer restrictions - preference for current shareholder; (3) flexibility - Close corporations can typically operate without a board of directors, a formal set of bylaws, or annual shareholder meetings; and (4) dispute resolution - the shareholders are allowed to agree in advance that any one of them can dissolve the corporation if some particular event occurs or, if they choose, for any reason at all.

Which of the below acts must a social enterprise do? State in its charter that it is a benefit corporation Obtain approval from the Secretary of State of a local social objective Publish quarterly reports assessing its performance in creating a public benefit Establish an internal whistleblower program

State in its charter that it is a benefit corporation To become a social enterprise, a company must: (1) State in its charter that it is a benefit corporation; (2) Obtain approval of its charter from two-thirds of its shareholders; (3) Measure its social benefit using a standard set by an objective third party; and (4) Prepare an annual benefit report assessing its performance in creating a public benefit.

Which of the categories of distinctive trademarks indirectly describe the product's function? Generic Arbitrary Fanciful Suggestive

Suggestive Suggestive marks indirectly describe the product's function. For example, "Greyhound" implies that the bus line is swift, and "Coppertone" suggests what customers will look like after applying the suntan product.

Which is true regarding franchises and the FTC? The FTC will not investigate the factual claims of the FDD. The FTC will not permit sales of franchises that lose money. The FTC will not sue for misleading circulars. The FTC will not require full disclosures.

The FTC will not investigate the factual claims of the FDD. The best answer is that the FTC will not investigate the factual claims of the FDD.

Rebecca Reyher wrote (and copyrighted) a children's book entitled My Mother Is the Most Beautiful Woman in the World. The story was based on a Russian folk tale told to her by her own mother. Years later, the children's television show Sesame Street televised a skit entitled "The Most Beautiful Woman in the World." The Sesame Street version took place in a different locale and had fewer frills, but the sequence of events in both stories was identical. Has Sesame Street infringed Reyher's copyright?

The court held that Sesame Street had not infringed Reyher's copyright because Reyher could not copyright the plot of a story, only her expression of the plot. Reyher v. Children's Television Workshop, 533 F.2d 87, 190 U.S.P.Q. (BNA) 387 (2d Cir. 1976).

Lauren creates a new invention that can freeze yogurt and keep it fresh indefinitely. The machine's process is very complex and cannot be discovered through reverse-engineering. The best method of protection for Lauren's invention would be a Copyright Trademark Utility Patent Trade Secret

Trade Secret Lauren's best choice for intellectual property protection would be a trade secret. 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. Because Lauren's process cannot be figured out through reverse engineering, keeping it a secret—potentially forever—would provide her with the greatest advantage.

State laws regulate corporations, but federal statutes determine much of their tax status. True False

True

Trademarks should be affixed to goods. True False

True

Holiday Inn is a national franchise. The organization has very specific standards on the appearance of its hotels, including the décor of individual rooms. Holiday Inn's franchise purchase contract states that franchisees must remodel their property every seven years in accordance with Holiday Inn's policies. Holiday Inn of Pleasantville, Inc. has been a franchisee for fifteen years but has never updated its rooms. The décor at this particular Holiday Inn is shabby and out of date. The home office has counseled Holiday Inn of Pleasantville repeatedly about the room décor but to no avail. It finally threatens to revoke the franchise if Holiday Inn of Pleasantville does not remodel its rooms within thirty days. Can the franchisor terminate the franchise if Holiday Inn of Pleasantville does not remodel? Yes, because Holiday Inn of Pleasantville has committed a tort against the franchisor. Yes, because remodeling every seven years is one of the contractual obligations of the franchise purchase contract. No, because Holiday Inn can only require remodeling when the franchisee has owned the franchise for at least thirty years. No, because Holiday Inn of Pleasantville has the right to operate its business as it chooses.

Yes, because remodeling every seven years is one of the contractual obligations of the franchise purchase contract.

Mack is the local owner of a restaurant franchise. Though the national chain is known for its hotdogs, Mack wants to sell vegetarian burritos. Must Mack get permission from the franchisor? Yes, unless he is sure he can make a profit on burritos. Yes, if the franchise agreement demands it. No, unless other restaurants in the area sell burritos. No, unless another franchise sells burritos already.

Yes, if the franchise agreement demands it

Sarah, Joan and Liz are the members of an LLC which owns a florist shop named Artistic Florals. The members split the monthly receipts by dividing checks made payable to the florist into three groups. Each member then deposits her stack of checks into her personal bank account. After two years, the business goes bankrupt and creditors begin looking for assets to satisfy the business debts. Can creditors of Artistic Florals go after the personal assets of the members? No. Creditors of an LLC can never make claims against the assets of individual members. No. The assets of each member are protected by corporate tax laws. Yes. The members committed a crime, and personal assets can be seized when members are guilty of criminal wrongdoing. Yes. The members of the LLC commingled the business assets with their personal assets.

Yes. The members of the LLC commingled the business assets with their personal assets. By failing to first deposit the checks into a corporate account, Sarah, Joan and Liz comingled corporate and personal assets. Piercing the company veil is allowed when members commingle business assets with their personal assets. When the company veil is pierced, the personal assets of each member may be used to satisfy the debts of the business.

Madrid Agreement

a multilateral agreement offering a single international application for trademark protection. Trademark registered with international registry is valid in all signatory countries -any trademark registered with the international registry is valid on all signatory countries

The Digital Millennium Copyright Act makes it illegal to: (select all that apply) a. delete copyright information or distribute false copyright information. b. circumvent encryption or scrambling devices on copyrighted work. c. encrypt or scramble copyrighted work. d. distribute copyright information electronically. e. sell parodies of music on the internet.

a. delete copyright information or distribute false copyright b. circumvent encryption or scrambling devices on copyrighted work. d. distribute copyright information electronically.

A U.S. firm seeking international trademark protection: must work through the Berne Convention and the National Intellectual Property Law Enforcement Coordination Council to obtain trademark protection in other countries. must complete an application, in the native language, for each country in which it would like to obtain trademark protection. need file only one application, in English, with the PTO, which sends the application to the World Intellectual Property Organization, which transmits it to each country in which the applicant would like trademark protection. This simplified process is available under the Trademark Law Treaty. must, according to the World Intellectual Property Organization of the United Nations, file an electronic application in its central office which, if accepted, automatically provides trademark protection in all countries of the world.

need file only one application, in English, with the PTO, which sends the application to the World Intellectual Property Organization, which transmits it to each country in which the applicant would like trademark protection. This simplified process is available under the Trademark Law Treaty. The Trademark Law Treaty simplified the process of applying for trademarks around the world. A U.S. firm seeking international trademark protection need only file one application, in English, with the PTO, which sends the application to the WIPO, which transmits it to each country in which the applicant would like trademark protection.

What happens if the partners of an LLP do not comply with the technicalities of the LLP statute? the LLP will be considered a taxable entity. non-partners will be forced to share liability. partners will lose protection against personal liability. the LLP will be converted into a state-owned enterprise.

partners will lose protection against personal liability

Thomas Manufacturing, Inc. is a social enterprise. Last year proved to be one of its most profitable earning periods ever, and the organization must decide what to do with the unexpected windfall. Which of the following is the best option for remaining true to its objective of being socially conscious? salary increases for female employees retrofitting the assembly line to incorporate low emission components selling additional shares of stock none of these

retrofitting the assembly line to incorporate low emission.

McDonald's famous golden arches and other marks used by the company illustrate a: collective mark. service mark. suggestive mark. certification mark.

service mark Google, Holiday Inn, Burger King, and Weight Watchers also are examples of service marks.

One of the benefits of the Patent Cooperation Treaty (PCT) is: the availability of a binding international patent that is valid in all member countries the option to receive an "international search report "that provides evidence of the patentability of the invention to accompany patent application in member countries. uniform international patent law recognition and acceptance of U.S. patents by all member countries.

the option to receive an "international search report "that provides evidence of the patentability of the invention to accompany patent application in member countries. Under the Patent Cooperation Treaty (PCT), applicants are offered a single filing and streamlined review process. Once a PCT application is filed, one of the major patent offices prepares an "international search report" and issues an opinion on whether the invention is patentable. This report, while nonbinding, helps applicants assess the patentability of their inventions and provides persuasive evidence to national patent offices. Inventors who wish to proceed internationally must then have the report translated and filed with applications and fees in whichever countries they want a patent

Intellectual property assets are fundamentally different from land assets because the value of intellectual property lies in the owner's right to invite others to use it. the value of land lies in the owner's right to invite others to use it. land has greater value than intellectual property. intellectual property has greater value than land.

the value of intellectual property lies in the owner's right to invite others to use it This is a fundamental difference between land and intellectual property. Owners of land find their value in preventing others from entering and using it, while owners of intellectual property gain value through regulating the use of these assets.

A person or company that misappropriates a trade secret is liable to the owner for a reasonably royalty. a. True b. False

true

Research Corp. applied for a patent for a so-called half toning technique that uses a mathematical formula to enable monitors and printers with limited color options to simulate a wider range of colors. Is this technique patentable? Yes, because it is abstract. No, because it is too abstract. Yes, because it is a process. No, because it used mathematical algorithms.

yes, because it is a process The trial court ruled that this patent application was invalid because it was too abstract. But the appellate court overruled, holding that, although the patent used mathematical algorithms, the inventors were patenting the process not the algorithms. It upheld the patent.