Midterm 1 Practice Questions

Intellectual Property can best be described by which of the following? America's Largest Export America's Second Largest Export America's Third Largest Export America's Fifth Largest Export

America's Second Largest Export

Which is an example of a brand that has become generic? BandAid Velcro Kleenex Chapstick

Chapstick

Which is the correct order of the "Continuum of Copying" from most to least amount of copying? Exact Copying, Substantially Similar, Strikingly Similar, Derivative Work Derivative Work, Strikingly Similar, Substantially Similar, Exact Copying Derivative Work, Substantially Similar, Strikingly Similar, Exact Copying Exact Copying, Strikingly Similar, Substantially Similar, Derivative Work

Exact Copying, Strikingly Similar, Substantially Similar, Derivative Work

Angry Birds proved their copyright infringement claim on their plush toys True False

False

Each factor considered for fair use is weighted equally True False

False

Limited liability companies are usually retained as shell operations. True False

False

Professional corporations allow doctors and other professionals to be exempt from tort suits for malpractice. True False

False

Which is not considered a commercial symbol for a trademark? Generic Name Sounds Smells Logos

Generic Name

According to lecture, a "bundle of sticks" refers to what? Commerce Clause A group of sticks Intellectual Property Litigation

Intellectual Property

Which of the following is not an exclusive copyright? Right to copy the work Right to prepare derivative works Right to distribute copies Right to mass produce

Right to mass produce

In Civil Procedure, who is the Finder of Fact? The Judge The Jury The Plaintiff The Defendant

The Judge

If a minor signs a contract, it is potentially voidable if: The minor is emancipated The minor is married The minor lied about age The contract is court-approved

The minor lied about age

What is untrue about the mirror image rule of contracts? Cannot vary the terms of the offer The terms can be thoroughly argued before offering Any change in terms is rejection and a counteroffer Developed in the 18th century

The terms can be thoroughly argued before offering

In a corporation, the profits are taxed and then the profits are taxed again when paid to the shareholders, so there is double taxation of corporate profits. True False

True

The owners of a limited liability company are called members. True False

True

A franchise is sold by: a franchisor a franchisee a franchise director the Franchise Trade Association none of the other choices

a franchisor

A reason the corporate status is often chosen is: corporations have the status of a legal person the Civil Rights Act of 1964 does not apply to corporations shareholders have the right to instruct management directors are immune from liability suits none of the other choices are true

corporations have the status of a legal person

A certification of incorporation from the government: gives a business monopoly privileges is necessary for a corporation to be recognized legally must be obtained by all limited partnerships is necessary or a corporation to be recognized legally and must be obtained by all limited partnerships none of the other choices

is necessary for a corporation to be recognized legally

A sole proprietorship comes into existence when: a person in business hires at least one employee two or more persons join together to work at a business a charter is received from the secretary of state when a federal tax identification number is issued for the business none of the other choices

none of the other choices

To create a corporation: articles of incorporation and an application must first be filed with the federal government the federal government issues a certificate of incorporation, which must be filed with an application to do business in the relevant states the incorporators must hold a public organization meeting, then file articles of incorporation the corporation's articles of incorporation are filed with the appropriate officer of the state none of the other choices

the corporation's articles of incorporation are filed with the appropriate officer of the state