BUS 13 Final Exam

Which of the following individuals is protected against defamation claims through a qualified privilege?

A non-government official who relies on and cites an official public document while making a public allegation.

Which of the following situations involving copyright infringement is most likely to be protected by the fair use defense?

A professor studies an experiment in a published journal and draws analogies with it during a class lecture.

Which of the following acts would be considered negligence per se?

Alan drives his car at 60 mph in a 35 mph zone because he does not see the speed limit sign.

Which of the following individuals is most likely to avoid liability for defamation through absolute privilege?

Andreas, a state court judge, who makes insulting statements about the accused during a criminal trial.

Which of the following is protected under the Copyright Act?

Choreographic works

_____ occurs when a copyright owner can prove that she has legal ownership of the work in question and that the infringer copied the work without permission.

Direct infringement

Which of the following is true of the taxation of a C corporation?

In a C corporation, both the entity and the shareholders pay tax through a system of double taxation.

_____ ownership interests afford the least amount of general rights associated with real estate.

Leasehold estate

Lindsay is one of the directors of Sky Create, Inc, a graphic design company. In which of the following situations will a court most likely find that Lindsay breached her duty of care?

Lindsay believes that a reporting officer has been acting suspiciously but still allows him to make decisions.

Max purchased an antique watch from a local store for $500. As soon as Max stepped outside the shop with the watch, a man approached him claiming that the watch was actually his and had been stolen over a week ago. He claimed that the watch was personalized with his initials and showed Max his driver's license. Max checked the watch and realized that the man was, in fact, the owner of the watch. In the context of rights of ownership, which of the following is true in this scenario?

Max should return the watch to the man who approached him, as this man is the actual owner.

_____ of a corporation have the power to elect and remove directors at their annual meetings.

Shareholders

The Trademark Dilution Revision Act (TDRA) includes factors for a court to consider in determining whether there is dilution of the protected mark by blurring. Which of the following is NOT one of the factors specified by the TDRA?

The degree of consumer confusion brought about by an infringing mark.

Which of the following is NOT typically included in a real property owner's "bundle of rights"?

The unlimited right to use and control the airspace over the property.

Which of the following is true of privately held corporations?

They often use unanimous consent resolutions to handle tasks like electing directors or issuing stock.

Which of the following is true of product liability?

Warranty laws impose liability even in the absence of negligence.

André is starting a small office supply business in his hometown. He enters into an agreement with Georgios, the owner of a retail space, to lease his new shop on a month-to-month basis. The lease renews automatically until one party gives advance notice to terminate the lease. André hopes to grow his business in that location for five years, then move to a larger space. The leasehold estate created by the landlord-tenant agreement between André and Georgios is

a periodic tenancy.

Under the doctrine of ______, a party may gain title to real estate through actual possession that is continuous, visible, and exclusive.

adverse possession

Elise was injured when her Proper Pour coffee pot spontaneously shattered. Elise may pursue a products liability claim against Proper Pour under all of the theories of liability listed below, except

assumption of risk.

The intentional touching of another person, without that person's consent, in a harmful or offensive manner is called _____.

battery

Eminent domain is traditionally invoked using a(n) _____.

condemnation proceeding

The Lanham Act does not protect ______ trademarks that are not inherently distinctive and have no secondary meaning.

descriptive

In a trademark infringement claim, the mark holder must prove that consumers are likely to be confused as to the source of the goods. In determining whether a likelihood of confusion exists, courts will generally consider all of the following factors, except

dilution by tarnishment of the mark.

When principals wish to convert a privately held corporation to a publicly held corporation, they will typically

engage in an initial public offering (IPO).

Andrew owns a piece of land covering 24 acres. He has unrestricted rights over the land, except for those restrictions imposed by law. His rights are valid for an unlimited period of time and the land can be inherited by his son or daughter. In other words, Andrew's rights over his land are best characterized as _____.

fee simple absolute

An S corporation

has the ability to distribute earnings without incurring double level taxation.

While acquiring rights for trademark protection, a mark holder may use the symbol TM to indicate that the

holder considers the mark distinctive enough to warrant protection and register with the USPTO but has not yet done so.

In cases of fraudulent misrepresentation, the law is most likely to allow the innocent party to recover when the tortfeasor

knows that the misrepresented fact is false.

A court is most likely to pierce the corporate veil when the

liability claim involves a tort committed by the corporation's employees.

Koralia left her designer jacket with the coat check attendant at a fine dining restaurant. The coat check attendant went on break, without locking the coat check room, and the jacket was stolen. In the context of bailment relationships, the restaurant is most likely Multiple Choice

liable as a bailee because the coat check attendant failed to act with reasonable care to protect the jacket.

Max is a waiter at a five-star restaurant owned by Chef Henri. Daniel, a chef from a less popular restaurant, offered Max $500 to provide him with Chef Henri's signature dish recipe. Considering that the recipe is one of the trade secrets of Chef Henri's restaurant, Max will most likely be charged with _____.

misappropriation

Sandra is a member of the board of directors at SwimGym, Inc. Sandra failed to attend most of last year's board meetings, claiming that she was unaware of their occurrence. During the meetings she did attend, it was clear that she had not read the reports or financial records provided by the company and was not up to date with the latest developments. In this scenario, Sandra breached her duty of care primarily through _____.

negligence

To qualify for a patent, the applicant must satisfy the _____ standard and prove that the invention or process is unique, original, and that no other identical invention or process exists.

novelty

To prove a defamation claim, plaintiff must prove that the defendant's statement was

provably false.

Corporate bylaws typically set the procedures and requirements for electing a board of directors. When the bylaws specify the number of shareholders who must be present to hold a vote, this is known as the _______ requirement.

quorum

Cubism" is a popular brand of household storage solutions. The mark "Cubism" best fits into the _____ category.

suggestive trademark

The authority of state and federal governments to take an individual's private property is called _____.

the power of eminent domain

The business judgment rule protects corporate officers and directors when

they set up a committee to establish a decision-making procedure that serves the best interests of the corporation.

The party that commits a civil wrong and causes the other party to suffer a loss is called a(n)

tortfeasor.

Amounts spent in defining, monitoring, and enforcing property rights are often called

transaction costs.

Under the doctrine of res ipsa loquitur, the injured party can prove a negligence claim by

using the facts of the case to create a presumption of negligence.