Business Law Module 3

a patent is goof for:

20 years from time of application

Which of the following is an example of a successful descriptive trademark?

Holiday Inn

an example of a generic trademark is:

Zipper / Thermos

17-year-old Robert purchased a car from King that was then destroyed by fire. Robert sued to recover the price of the car. The court would hold that:

a contract existed that Robert could disaffirm, but he could only collect a refund equal to the value of the car after the fire

Contracts under Article 2 of the UCC could include:

a load of wheat

an offer is:

a promise to do something or to refrain from doing some specific thing

A warranty of title means:

a seller is the rightful owner of the goods being sold

A owes B $10,000. A promises to pay the money back to C, to whom B owes $10,000. C would be called:

a third party beneficiary

the orange exterior of Home Depot stores is an example of:

a trade dress

the formula for Coca-Cola is:

a trade secret

"Bozo, if you wash my car I will pay you $10." Bozo says nothing but washes the car later that day. There is what may be called:

a unilateral contract

intangible property is property that:

a. is invisible and impossible to hold

counterfeit or fake goods do not create which of the following problems:

all are problems: death and injury to unsuspecting consumers, costly legal processes, lost jobs in US, lost revenue to owner of genuine goods

The law of copyright gives a copyright owner all of the following rights except the right:

all are protected rights: to publish the work, to perform the work, to display the work, to reproduce the work

a trademark would not include a:

all choices are trademarks: design, word, name, phrase

"Apple" (computers) and "Exxon" (gasoline) are examples of what kind of trademark?

arbitrary and fanciful

When someone accepts an offer by an exchange of mutual promises, what kind of contract has been formed?

bilateral

A good is tangible if it:

can be seen and touched

A ____ is any word, symbol, device, or any combination of these that is used, or intended to be used, in commerce to certify regional or other geographic origin.

certification mark

A trademark or service mark that is used in commerce by members of a cooperative, an association, or other collective group or organization is a(n):

collective mark

_ occurs when a trademark is used improperly in a domain name

cybersquatting

____ occurs when another person who, at any time after the owner's mark has become famous, commences use of a mark or trade name in commerce that is likely to cause dilution by blurring or dilution by tarnishment of the famous mark, regardless of the presence or absence of actual or likely confusion, of competition, or of actual economic injury.

dilution

anticipatory breach:

discharges the duties of the non-breaching party and allows that party to sue for damages from the repudiation

a contract made by a person with partial capacity is:

enforceable unless the person with partial capacity exercises the right to disaffirm the contract

Which of the following is a type of damage award that may be granted by a court as a remedy for breach of contract:

expectancy, nominal, compensatory, liquidated

when making an offer, the offeror must:

express a desire to be bound

A contract is a(n) ____ if there is a written or oral expression of intent by the parties to enter into a legally binding agreement.

express contract

A(n) ____ is created by a seller's promise or guarantee as to the quality, safety, performance, or durability of goods being sold.

express warranty

"Clorox" is a generic mark t/f

false

"I want $10,000 for my car," says Sam. "I would love to have it," says Jan. We have an offer that has been accepted to form a contract. t/f

false

"Raisin Bran" is not a trademark because it uses descriptive words for the product. t/f

false

An accord is an agreement by parties to a contract to have a third party step in and fulfill part of the duties of a contract. t/f

false

Fair use allows small volume copying of copyright work so long as the revenue is "nominal." t/f

false

If a minor agrees to join the Army, the minor's agreement to join is voidable. t/f

false

If one party breaches a contract, the party suffering from the breach has no duty to mitigate (reduce) the extent of the damages suffered from the breach. t/f

false

Intellectual property must show some evidence of labor having been provided to create it for protection to be granted. t/f

false

The "look" of a business, such as a restaurant, could not fall under trade dress. t/f

false

a generic trademark is licensed to all firms in the same industry t/f

false

a transfer of contract duties to a third party is an assignment t/f

false

a transfer of contract rights to a third party is a delegation t/f

false

The Copyright Act allows fair use of copyrighted material in which of the following:

for all choices: to produce a news report about the material, to criticize the material, for teaching or scholarship

without _ a contract may be void

genuine consent by both parties

a contract that violates state or federal statutory law is:

illegal and unenforceable

Intellectual property owners can sue for ____ if their intellectual property is used without authorization.

infringement

_ is property that may be invisible and impossible to hold

intangible property

intellectual property is created by:

intellectual effort

A contract is unenforceable if:

it is in restraint of trade, it is contrary to public policy, it has an exculpatory agreement, it is unconscionable

which of the following is true of a trade secret:

it isn't known by the competition / the business would lose its advantage if the competition were to obtain it

one advantage of a patent is that:

it provides strong legal protection for its life

A ____ to the promisor exists when the promisor acquires some legal right through the promisee's act, promise to act, or refraining from doing some act.

legal benefit

A computer store that one of HJ's friends owned went broke. HJ bought some disk drives from the friend. HJ sold the equipment. Some buyers are mad because the equipment has problems. HJ told them no refunds. If buyers sue him based on the UCC, they are likely to:

lose because HJ does not regularly deal in these goods

counterfeit goods:

may be seized and destroyed

A "reasonable price":

may or may not be "fair market value"

without consideration:

neither party can enforce the promise or agreement

Consideration is defined as something of value or something bargained for in exchange for a promise. Normally, if consideration is absent:

neither party may enforce the promise

Uncle Jim tells his niece as she goes off to Creepy U. that if she maintains a 3.5 average that he will buy her a BMW convertible when she graduates. At graduation she has a 3.7 GPA and so she wants the BMW convertible. Uncle Jim says that he doesn't have to give her the BMW convertible because what she did was for her own good. Niece wants to sue Uncle Jim to get the BMW convertible. There probably is:

none of the choices

16-year-old Green bought a car that he later wanted to return for a full refund. If the dealer refuses a court is likely to hold that:

none of the other choices

A ____ contract is one that is accepted by performance.

none of the other choices

A offers B $100,000 for his farm, and they sign an agreement for the sale. Before the money is paid, A finds out that the market value of the farm is only $55,000. A:

none of the other choices

Anne says, "I'll sell you my car for $2,500." Steve says, "I sure would like to buy it." We have an offer and acceptance:

none of the other choices

Article 2 of the UCC covers the sale of:

none of the other choices

consideration is the element of a contract that:

prevents it from being a gift

an effective acceptance must be;

properly communicated, unequivocal, unconditional

contract law is primarily:

state common law

A counteroffer ____ the original offer.

terminates

cybersquatting is restricted by:

the Anticybersquatting Consumer Protection Act

implied contracts arise from:

the actions rather than the expressions of the parties

a trade name is protected by:

the common law

if an offeror or offeree dies:

the contract is terminated by the operation of law

if people are told that counterfeit goods are counterfeit then:

the counterfeit goods are still a violation of the law

a patent is good for 20 years from:

the date granted

an express warranty may be created by all but which of the following:

the guarantee the buyer reasonably expects for the product

express contracts occur when:

there is a written or oral expression of intent by the parties to enter into a legally binding agreement

The law of copyright gives a copyright owner all of the following rights except the right:

to claim public domain works

Arbitrary and fanciful, suggestive, descriptive, and generic are classifications of:

trademarks

"Chicken of the Sea" is an example of a suggestive trademark t/f

true

A contract can be formed under Article 2 of the UCC even if some of the offer's major terms are omitted or are simply left open for determination later. t/f

true

A contract can exist under the UCC even if some terms are changed or added by the offeree t/f

true

A copyright gives the copyright owner the right to perform the work in public t/f

true

A third-party beneficiary is a party who is not part of an original contract but who acquires rights under the contract. t/f

true

After a buyer breaches a contract for the sale of goods, the seller can resell the goods (or the remaining balance of the goods) to another buyer. t/f

true

An accord is an agreement by parties to a contract to give and accept some performance different from that originally bargained for. t/f

true

Counterfeiting of trademarks causes companies to lose money and reputation. t/f

true

Infringement means a seller causes confusion about the origins of a product by improper use of a trademark. t/f

true

Two promises or an exchange of promises are involved in bilateral contracts. t/f

true

a company cannot receive trade dress control of a color in all uses t/f

true

a contract may be based on a promise not to do something t/f

true

a transfer of contract duties to a third party is a delegation t/f

true

a transfer of contract rights to a third party is an assignment t/f

true

an offer is made by an offeror t/f

true

arbitrary and fanciful trademarks receive the strongest legal protection t/f

true

consideration is something of value in exchange for a promise t/f

true

fair use depends if the copying is for commercial or educational use t/f

true

parents are public information t/f

true

A ____ is an order by the court that requires a party to perform or to refrain from performing certain acts.

unilateral mistake

A(n) ____ is a statement or representation made by a seller that goods conform to certain standards of quality, safety, performance, and title

warranty

a acceptance is properly communicated:

when it is sent by the offeree

an acceptance is properly communicated at the point:

when the offeree signs the contract

which is not an element for an offer to be effective:

willingness to accept consideration

infringement is:

wrongful, unauthorized use of intellectual property in violation of the owner's rights