ACCT 324- Exam #4
A ______ is a process, product, method of operation, or compilation of information that gives a businessperson an advantage over his or her competitors
Trade secret
Which of the following is a correct statement regarding trademark dilution laws?
Trademark dilution laws prohibit the use of distinctive or famous trademarks, even without a showing of consumer confusion.
What is the term for the individual who holds title and possession of property of a trust for the benefit of another person?
Trustee
A(n) _____ arrangement occurs when a holder issues a license to use a patented object only if the licensee agrees to buy some nonpatented product from the holder.
Tying
Which of the following is a correct statement regarding the legality of cross-licensing and tying arrangements?
Both cross-licensing and tying arrangements are illegal.
______-licensing occurs when two patent holders license each other to use their patents only on the condition that neither licenses anyone else to use his or her patent without the other's consent.
Cross
The insurance policy becomes effective on the:
Effective date
Which of the following is an example of a statutory restriction on land use?
Environmental regulations
Which of the following encourages individuals to make decisions about issues that frequently arise at the end of life, such as what to do with a person's organs and body after death?
Estate planning
When a patent is issued for an object, it gives its holder the ______ right to produce, sell, and use the object of the patent for 20 years from the date of the ______.
Exclusive; application
The legal procedures that must be followed to effectuate a transfer of property include which of the following?
Execution Delivery Recording Acceptance
When a bailment is ______, there is no need for a written agreement unless the statute of frauds applies to the bailment.
Express
An easement is a(n) ______ right to use some part of another's land for a specific purpose without taking anything from it.
Irrevocable
To void an insurance contract due to the applicant's misrepresentation of significant information in an insurance application, the insurance company must demonstrate that the misrepresentation was ______, and the company's knowledge of it would have resulted in the ______ of the offer.
Material; rejection
Insurance is a contract in which the insured party makes payments to the insurer in exchange for the insurer's promise to make payment or transfer goods to the insured or a named beneficiary in the event of injury to or destruction of the insured party's ______ or ______.
Property; life
In patent litigation, what should the patent holder do when filing patent infringement contentions?
Provide copies of all documents relating to the conception of the patent.
Which of the following are ways of voluntary transfer of property?
Purchase, Sale
If the landlord interferes with the tenant's use and enjoyment of the property, she could be liable for breach of the covenant of:
Quiet enjoyment
______ the will means canceling it.
Revoking
An insured party who decides to discontinue a policy at any time can do which of the following?
Tell the insurance company to cancel the policy Stop paying the premiums
Which of the following are categories of leases that can be created?
Tenancy at will Period tenancy Definite term
A ______ involves co-ownership by married couples.
Tenancy by the entirety
A condominium interest gives the holder exclusive ownership rights of a unit within the condominium and a ______ with the other condominium owners over the land.
Tenancy in common
Which of the following is the most common type of co-ownership of real property?
Tenancy in common
If premises are used for commercial purposes, the ______ is responsible for maintaining the premises.
Tenant
The most distinguishing factor of the landlord-tenant relationship is the ______ right to ______ possession of the property named in the lease.
Tenant's; exclusive
A definite-term lease is also known as a:
Term for years
What is the term for the requirement that an individual must be old enough and of sound mind to create a valid will?
Testamentary capacity
What is the term for an individual who writes a will?
Testator
Competitors may discover a trade secret by any lawful means, such as by doing ______ engineering.
Reverse
During which decade did the United States Congress pass the Federal Trademark Dilution Act?
1990s
During what decade did the United States Congress pass the America Invents Act?
2010s
What is the typical grace period allowed in an antilapse clause for payment of an overdue insurance premium?
30 days
Which of the following is a type of trade secret?
A compilation of information
Which of the following is true regarding bailments?
A bailment may be for the mutual benefit of the bailor and the bailee.
Which of the following qualifies for trademark protection?
A distinctive word
Which of the following protects a product, process, invention, machine, or plant produced by asexual reproduction?
A patent
Which of the following describes a settlor?
A person who creates a trust
Which of the following represents the right to go onto someone's land and take part of the land or a product of it away from the land?
A profit
Which of the following is not a main provision of the Digital Millennium Copyright Act?
A provision that makes it legal to circumvent the encryption and other antipiracy technology that protects commercial software
Which of the following occurs when a holder issues a license to use a patented object only if the licensee agrees to buy some nonpatented product from the holder?
A tying arrangement
______ is when a tenant moves out of the leased premises before the end of the lease term, has no intent to return, and has defaulted on rent payments to the landlord.
Abandonment
What are the elements required for a valid gift?
Acceptance Delivery Donative intent
If the insured and the insurance company cannot agree on the ______ of the loss, the insured can demand an evaluation of the loss under the policy's ______ clause.
Actual value; appraisal
A person can express health care wishes and limits through what type of documents?
Advance directives
What is the term for describing the fact that a will can be changed by a testator?
Ambulatory
Which of the following is a legal remedy available to the owner of a registered mark if an infringer illegally uses the mark to pass off goods as being those of the mark owner?
An injunction
_______ ________ refer to all or part of an individual's body that the individual wishes to donate to a hospital, university, organ bank, etc.
Anatomical gifts
Which of the following is an insurance provision that provides a grace period in which to make an overdue payment?
Antilapse clause
The insured has a duty to disclose all material information on the insurance:
Application
If ______ for the insured and the insurer fail to agree on the actual value of the loss, they typically submit their different evaluations to a(n) ______ who will resolve the differences.
Appraisers; umpire
An easement or profit is ______ when it runs with property adjacent to the property on which it exists.
Appurtenant
Some insurance contracts include clauses that force both the insurer and the insured to submit any dispute to a(n) ______, a neutral third party who will listen to the evidence and arguments presented by both parties and render a decision regarding the dispute.
Arbitrator
Which section of the Uniform Commercial Code (UCC) governs documents of title?
Article VII
If a bailment is intended to benefit only the bailor, the bailee is liable for damage to the property caused by the ______ negligence.
Bailee's gross
Which of the following refers to a relationship that arises when one party transfers possession of personalty to another party to be used by the recipient in a stipulated manner for a stipulated time?
Bailment
Generally, a requirement of a will is that the will:
Be written typically by typing it on regular paper
An agreement that gives temporary insurance until the company decides to accept or reject the insurance application is known as a:
Binder
Insurance that protects a person or property from accidental injury, such as workers' compensation or automobile insurance, is ______ insurance.
Casualty
Regarding the extent to which the real estate seller must disclose known defects to the buyer, the traditional answer was ______, or let the buyer beware, meaning that the seller had no obligation to tell the buyer about any problems.
Caveat emptor
Every business should purchase a _____ policy that protects against a broad range of risks that the firm can specify, including personal injury suits by customers and suits by competitors over intellectual property.
Commercial general liability
What type of insurance policy protects a business against a broad range of risks that the firm can specify, including personal injury suits by customers and suits by competitors over intellectual property?
Commercial general liability
______ carriers are licensed to provide transportation services to ______.
Common; the public
With a _____ estate, should a prohibited event occur or a required event fail to occur, the interest will be terminated.
Conditional
The owner of a ______ estate possesses the same interest as the owner of a ______ absolute estate, but if a prohibited event occurs or a required event fails to occur, the interest will be terminated.
Conditional; fee simple
Which of the following is a means by which people acquire title to property?
Confusion
The ______ delivery of a gift involves the delivery of an item that gives access to the gift or represents it.
Constructive
A trademark, when used with a product, helps ______ identify the product with the ______.
Consumers, producer
A(n) ______-term lease automatically expires at the end of the specified term.
Definite
An insured might be asked to provide the insurance company with a(n) ______ as part of his or her duty to the insurer.
Deposition
As part of their duty to cooperate with the insurer, insured individuals might be asked to provide the insurance company with a formal out-of-court statement known as a(n) ______ or ______ at trial.
Deposition; testify
Which of the following is not a means by which people acquire title to property?
Diffusion
Trademark ______ laws prohibit the use of distinctive or famous trademarks, even without a showing of consumer confusion.
Dilution
The term trade ______ means the overall appearance and image of a product. Multiple choice question.
Dress
The No Electronic Theft Act is:
Federal Law
Which judicial body has jurisdiction over a patent infringement suit?
Federal court
A(n) ______ is the most complete estate a person may have.
Fee simple absolute
If all the legal requirements are met, unless the contrary is stated, the law presume the conveyance is a:
Fee simple absolute
Nina rents an apartment from Jason. According to the contract, she must pay the rent on or before the fifth day of every month. If Nina fails to pay the rent by the fifth day, she has:
Forfeited her interest in the premises
Which of the following refers to when one party gives up all rights in a leased property because of not fulfilling a part of the lease?
Forfeiture
A general warranty deed contains certain warranties or promises by the:
Grantor
A bailment may be ______ or for ______.
Gratuitous; consideration
In terms of the various ways to categorize insurance, if the purchaser is neither the insured nor the insurer, it is ______ insurance.
Group
What is the name for the individual who makes health care decisions for a principal who is incapacitated?
Health care proxy
Examples of statutory restrictions on land use include ______ and ______.
Historic preservation statutes; environmental regulations
A(n) ______ trust is called an involuntary trust because the courts, rather than settlors, create them.
Implied
______ warranty of habitability is a requirement that the leased premises be fit for ordinary residential purposes.
Implied
The ______ generally ensures that the landlord is responsible for repairs to major defects in the rental property.
Implied warranty of habitability
In a divorce, a couple's tenancy by the entirety ownership interest converts to a tenancy:
In common
A(n) ______ clause prohibits the insurer from delaying payment because it decides to investigate the insurance application for fraud.
Incontestability
Which of the following is a state-mandated provision ensuring that after an insurance policy has existed for a specified period, the insurance company cannot contest any statements made in the application?
Incontestability clause
Usually, express trusts are written and called trust ______ or ______.
Instruments; agreements
Only an individual with a(n) ______ can enter into a valid insurance agreement.
Insurable interest
If the ______ is liable to a third party for loss, his or her insurer has a duty to pay these compensatory damages.
Insured
Insurance is a contract in which the insured party makes payments to the insurer in exchange for the insurer's promise to make payment or transfer goods to the ______ or a named ______ in the event of injury to or destruction of the insured party's property or life.
Insured; beneficiary
For an insurance company to cancel a policy, the company must give the ______ advance notice, typically including a ______ period, before the policy is canceled.
Insured; grace
If the insured did not have an insurable interest, the insurance contract is void and the:
Insurer is not required to pay on a claim
Which of the following is not addressed by the Uniform Probate Code?
Intestacy insurance
When a person dies without a will, the person died:
Intestate
Which of the following is correct regarding tenancy in common?
It gives each co-owner the right to own an unequal share of the property. It gives each co-owner the right to sell his or her interest without the consent of the others.
Which of the following is correct regarding a bailment?
It involves a person transferring the possession of a property to another.
Which of the following best describes a bill of lading?
It is a document issued by a person engaged in the business of transporting goods that verifies receipt of the goods for shipment.
Which of the following is correct regarding whole-life insurance?
It is distinctive because it has a cash-surrender value.
A tenant may transfer his or her interests in the property unless:
It is prohibited by the lease agreement
Which of the following is correct regarding a surrender of property?
It must be in writing. It is a mutual agreement.
An easement or profit is appurtenant when:
It runs with land adjacent to the property on which it exists
Which of the following forms of co-ownership of real property recognizes equal ownership, with the property being divided equally among the survivors upon the death of one of the co-owners?
Joint tenancy
Life insurance allows a business to take out a policy on a _________ and provide payment n the even of the person's death.
Key employee
Courts decide whether a person is of sound mind by considering whether the testator:
Knows the extent of his or her property Knows he or she is making a will Understands traditions regarding who should get his or her property
Under the ______ Act, a mark might be used without permission on completely unrelated goods, potentially diminishing the value of the mark.
Lanham
If a landlord sells a rented property, the:
Lease is legally binding and is transferred to the new owner
Which of the following is not a nonpossessory estate?
Leasehold
Without _____ insurance, a store could experience severe financial loss for responsibility to a customer for injuries resulting from the store's negligence.
Liability
________ insurance protects a business from tort responsibility to third parties.
Liability
A(n) ______ is a temporary and revocable right to use another's property.
License
With which type of interest in real property is a future interest in an estate most likely to be associated?
Life estate Conditional estate
Which of the following is a type of property insurance?
Livestock insurance
If the seller has legal title to the property, there are no liens on it, and there are no restrictions of which the buyer is not aware, the title is said to be:
Marketable
The laws of intellectual property protect property that is primarily the result of ______ creativity rather than _______ effort.
Mental, physical
Rent can be paid to the landlord in various forms, such as:
Money Services
________ hazard theory suggests that individuals who are insulated from risk sometimes behave differently.
Moral
______ theory suggests that a person might not lock his or her car because an insurance company covers the risk of theft.
Moral Hazard
Personal property is generally defined as ______ property.
Movable
What is the primary international protection for intellectual property?
Multilateral conventions
A ______ will is one that two or more testators execute in which they leave property to each other as long as the survivor agrees that when he or she dies, the remaining property will be distributed according to a plan created by all testators.
Mutual
Most insurance claims for damages the insured causes a third party are settled through ______ between the insurer and the third party.
Negotiation
Which of the following is a correct statement regarding the Agreement on Trade-Related Aspects of Intellectual Property Rights?
No signatory country can give its own citizens better intellectual property protection than it grants to citizens of other signatories.
In order for patent protection to be granted, the object of the patent must be:
Nonobvious
To begin the insurance defense process, the insured must ______ his or her insurer of the claim for which the insured is potentially liable.
Notify
Which of the following should a possession be to qualify as an adverse possession?
Notorious Open Actual
For patent protection to be granted, the object of the patent must be ______, or new.
Novel
Which of the following is a lawful means to discover a trade secret?
Observing its use on a public plant tour
When can an inventor bring a patent infringement suit in a federal court against anyone who uses, sells, or manufactures the patented invention?
Once the patent has been issued
Condemnation is the legal process by which a transfer of property is made against the protest of the:
Owner
In most states, the finder of lost property has title to the lost goods against all except the:
Owner
Which of the following is a correct statement regarding the duration of patent protection of an object?
Patent protection lasts for twenty years from the date of patent application.
All property that is not land (or not permanently affixed to land) is considered:
Personal property
The most common use of restrictive covenants today is in urban developments sometimes called:
Planned communities
The holder of a leasehold has a(n) Blank______, but not a(n) Blank______, interest.
Possessory; ownership
______ liability insurance protects the manufacturer of a good from loss due to damages paid to people injured while using the good.
Product
A(n) _____ is the right to go onto someone's land and take part of the land or a product of it away from the land.
Profit
What are the two categories of property?
Real and personal
If a mark is _____, the holder of the mark may recover damages from an infringer who uses it to pass off goods as being those of the mark owner.
Registered
Promises made by property owners to use or not use their land in particular ways are known as:
Restrictive covenants
Which of the following are promises made by property owners to use or not use their land in particular ways?
Restrictive covenants
What is the term for someone who creates a trust?
Settlor
In a trust, the _____ delivers and transfers legal title to property to a _____, who holds and uses the property for the benefit of a third person.
Settlor; trustee
According to judicial interpretation of the Federal Trademark Dilution Act, marks need not be identical, only:
Similar
What type of deed promises only that the grantor has not done anything to lessen the value of the estate?
Special warranty
An easement is an irrevocable right to use some part of another's land for a(n) ______ purpose without taking anything from it.
Specific
A transfer of less than all of a tenant's interest in a leased property is called a(n):
Sublease
Which of the following refers to an agreement between the landlord and the tenant for the tenant to give up possession and interest in the leased property during the lease term?
Surrender
In its Cruzan v. Director, Missouri Department of Health decision, the United States Supreme Court held that a person has a constitutionally protected right under ______ the U.S. Constitution to refuse life-sustaining medical procedures.
The Fourteenth Amendment to
Which of the following conventions specifically protects industrial rights and restricts unfair competition?
The Paris Convention of 1883
Which organization developed the Universal Copyright Convention?
The United Nations
To succeed on a claim of trade-dress infringement, which of the following must a party prove?
The alleged infringement creates a likelihood of confusion. The trade dress is inherently distinctive.
Which party is the person named to receive the insurance proceeds in the event of injury or damage?
The beneficiary
Which of the following is correct regarding term-life insurance?
The beneficiary receives payment only if the insured dies within the specified term.
In an insurance relationship, which party makes a payment called a premium?
The insured
After the lease has been signed and the tenant has taken possession of the leased property, who can change the person receiving the rent compensation?
The landlord
If a disaster destroys the premises, what will happen to the lease?
The lease is typically terminated.
Which of the following are the two types of express trusts?
The living trust and the testamentary trust
In patent litigation, what procedural step occurs immediately after the initial pleadings are filed?
The patent holder files patent infringement contentions.
What is the name of the individual who collects and distributes the property of a decedent's estate?
The personal representative
Typically, which parties to a lease can transfer their leased property rights?
The tenant The landlord
To be valid, who must typically sign a will?
The testator
Identify an element a party must prove to succeed on a claim of trade-dress infringement.
The trade dress is primarily nonfunctional.
A will is generally valid if it meets which of the following requirements?
The will must include the testator's signature. The will must be in writing. The will must be attested by witnesses. The testator must have testamentary capacity while writing the will.
When a bailment is for the purpose of transportation or storage of goods, certain documents of ______ may be issued in conjunction with the bailment.
Title
If the bailment is intended ______ the bailee is liable for damage to the property caused by the bailee's gross negligence
To benefit only the bailor
Which of the following are reasons why individuals engage in estate planning?
To promote family harmony To provide for their family financially after death
The insurer is sometimes called the:
Underwriter
What is the term for recommendations about what legal rules should govern on a particular topic?
Uniform laws
The duties and rights of a lease can be classified under which of the following main areas?
Use Maintenance Rent Possession
If the insurance applicant makes a misleading or misrepresentative material statement and the insurance company relies on this false statement, the insurance company can:
Void the contract
Which of the following is the most common means by which property is acquired?
Voluntary transfer
Identify the types of documents of title that govern bailments.
Warehouse receipts Bills of lading Delivery orders
If the life holder of a life estate neglects or abuses the property, or fails to make necessary repairs such that the property's value diminishes, the future holder can bring a legal action to recover damages for:
Waste
How might a trust terminate?
When a specified event occurs At a set date
When does a periodic-tenancy lease end?
When either the landlord or the tenant gives sufficient notice
In the context of the voluntary transfer of ownership, when is the delivery of a gift considered actual?
When it is physically presented When it is constructively presented
Typically, who is liable for an injury that occurs on leased premises?
Whoever has control over the space where the injury occurred
The treaties that ensure international protection for patents and copyrights are generally administered by the ______.
World Intellectual Property Organization