Chapter 9

Copyrights can be placed on all of the following except (A) ideas. (B) lectures. (C) books. (D) music.

ideas

For the author of creative material to obtain a copyright, the material must be in _____ form. (A) nontangible (B) technical (C) tangible (D) commercial

tangible

Because of the fair use doctrine, it is sometimes difficult to establish infringement.

True

One of the principal advantages of a corporation is that the stockholder's liability (the most money a person can lose) is limited to an individual's investment.

True

Works created and copyrighted after January 1, 1978, are protected for the life of the author plus 70 years.

True

The specification section of a patent application should include all of the following except (A) an introduction. (B) examples and/or experimental results. (C) a summary of invention. (D) a budget for handling infringement.

a budget for handling infringement

Which of the following are suggestions to minimize legal costs? (A) visit the lawyer during normal hours of operation (B) have the lawyer custom design forms specifically for you (C) always handle matters personally (D) try to avoid hiring a lawyer if and until an emergency requires it

visit the lawyer during normal hours of operation

Anyone who violates an author's exclusive rights under a copyright is liable for infringement.

True

The Bankruptcy Act was set up in order to provide assistance to both debtors and creditors.

True

The object of a patent is to provide the holder with a temporary monopoly on his or her innovation.

True

Legal protection is granted to computer programs in what form? (A) patent (B) trademark (C) copyright (D) service mark

copyright

A patent gives the holder a temporary (A) profit. (B) oligopoly. (C) monopoly. (D) specification.

monopoly

The purpose of filing for Chapter 7 bankruptcy is (A) liquidation. (B) adjustment. (C) reorganization. (D) allocation changes.

allocation changes

B corporations' legal structure expands corporate accountability to encompass all of the following except (A) higher legal accountability standards. (B) comprehensive and transparent internet standards. (C) comprehensive and transparent social performance standards. (D) society's greater good.

comprehensive and transparent social performance standards

The process of trademark registration is (A) expensive. (B) impossible. (C) one that must be handled by a lawyer. (D) inexpensive.

expensive

Because of the doctrine, it is sometimes difficult to establish infringement. (A) fair use (B) acquisition (C) freedom of information (D) right to publish

fair use

An infringement budget deals with (A) legal battles. (B) government bribes. (C) the outside molding of a building. (D) advertising expenditures.

legal battles

Items that can qualify for patent protection include all of the following except (A) machines. (B) products. (C) processes. (D) ideas.

ideas

Which is not one of the major sections of the bankruptcy act? (A) straight bankruptcy (B) reorganization (C) adjustments of debts (D) liquidation

liquidation

In order to obtain a patent, an application should be filed with (A) the Office of Government Publications. (B) the Patent and Trademark Office of the Department of Commerce. (C) Government Accounting Office. (D) the United States Small Business Association.

the patent and trademark office of the department of commerce

Every business at some point needs the services of an attorney.

True

Anyone who violates an author's exclusive rights under a copyright is liable for (A) a prison term. (B) infringement. (C) a monetary payment equal to proven damages. (D) two times annual sales.

infringement

All of the following are recognized as advantages of partnerships except (A) ease of formation. (B) possible tax advantages. (C) direct rewards. (D) lack of continuity.

possible tax advantages

To effectively pursue a patent violation, experts recommend that the entrepreneur (A) handle all matters personally. (B) prepare a realistic budget for infringement. (C) fill out a preprinted form obtained from a patent office. (D) sue as quickly as possible.

prepare a realistic budget for infringement

A patent infringer can be liable for all _______ resulting from the infringement as well as for legal fees. (A) profits (B) damages (C) claims (D) costs

profits

If an entrepreneur concludes that an innovation will withstand any legal challenge, a patent should be (A) dropped. (B) pursued. (C) integrated. (D) obfuscated

pursued

Copyrights may be expressed in all of the following except (A) books. (B) periodicals. (C) motion pictures. (D) records.

records

At present, the courts have held that the unauthorized use of another's mark in a domain name may constitute trademark infringement.

True

Because corporate law makes it difficult for businesses to consider employee, community, and environmental interests in their decision making, the B corporation has been introduced.

True

If infringement can be proven in court, a monetary award may be given to the trademark holder.

True

The text of a patent application is known as the (A) specification. (B) particulars. (C) concept. (D) value.

specification

There are two parts to a patent application, claims and . (A) percentage (B) specification (C) value (D) integration

specification

Which of the following falls under Chapter 7 bankruptcy? (A) The debtor surrenders most property to a court trustee. (B) The debtor fails to file income taxes. (C) The debtor is relieved of obligations. (D) The debtor is arrested.

the debtor is relieved of obligations

In bankruptcy terms, Chapter 7 is often called liquidation.

True

A trademark is a distinctive _____ that is identified with a company's product. (A) name (B) billboard (C) TV ad (D) storefront sign

name

The failure of a trademark owner to file an affidavit stating it is in use is referred to as which of the following trademark invalidation reasons? (A) cancellation proceeding (B) a competitor's lawsuit (C) consumer loss of interest (D) once a trademark is established, no legal action can invalidate it

cancellation proceeding

The patent process is not complex; neither does it require careful planning.

False

According to the U.S. Patent Office, the process of obtaining a patent takes how many years? (A) about 2 years (B) about 3 years (C) about 4 years (D) about 6 years

about 3 years

The emerging body of law governing cyberspace is often referred to as: (A) netlaw. (B) cyberlaw. (C) interlaw. (D) legal web.

cyberlaw

A trademark may be invalidated in all of the following ways except (A) cancellation proceedings. (B) cleaning-out procedure. (C) abandonment. (D) generic words.

generic words

Once issued, the trademark is registered with the Patent and Trademark Office.

True

The owner of a copyright may do all of the following except (A) reproduce the work. (B) deduct the intrinsic value of the rights from one's taxes (C) perform the work publicly. (D) display the work publicly.

deduct the intrinsic value of the rights form one's taxes

Specific forms of partnership include which of the following? (A) limited partnerships (B) limited partnerships and limited liability partnerships (C) limited partnerships and S partnerships (D) S partnerships and limited liability companies

limited partnerships and limited liability partnerships

Which of the following is a useful rule used to avoid pitfalls in selecting a trademark? (A) Trust a lawyer's judgment. (B) Copy a competitor's trademark. (C) Avoid abbreviations and acronyms. (D) Never choose a trademark without first conducting a trademark search.

never choose a trademark without first conducting a trademark search.

To establish a sole proprietorship, a person needs to (A) obtain whatever local and state licenses are necessary. (B) legalize financial documents. (C) carefully assume their shares in the profits. (D) obtain owner stock.

obtain whatever local and state licenses are necessary

A typical symptom of impending bankruptcy failure is when (A) new competition exits the market. (B) other firms seem to be selling products that are a generation ahead. (C) retailers always seem to be understocked. (D) the entrepreneur seeks to exit the market.

other firms seem to be selling products that are a generation ahead.

When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of (A) abandonment. (B) cancellation proceedings. (C) cleaning-out procedure. (D) generic meaning.

generic meaning

The registration of a trademark has a lifetime of (A) 20 years plus 5-year renewable periods. (B) 25 years. (C) 10 years plus 10-year renewable periods. (D) the lifetime of the owner.

10 years plus 10- year renewable periods.

Design patent protection lasts for _____ years.

14

Patents that are not design patents have _____ years of protection. (A) l5 (B) 20 (C) 22 (D) 25

20

Works created after January 1, 1978, have a copyright for the life of the author plus (A) 70 years. (B) 50 years. (C) 14 years. (D) 10 months.

70 years

Business owners normally prefer Chapter 7 bankruptcy over any other form of bankruptcy.

False

Chapter 13 bankruptcy involves a reorganization of the enterprise.

False

Chapter 7, Chapter 9, and Chapter 11 are the most common forms of bankruptcy.

False

Copyrights have to be registered with the Copyright Office.

False

Design patents last for 20 years.

False

It often is possible to obtain more capital and a better range of skills in a sole proprietorship than in a partnership.

False

Laws governing intellectual property rights include copyrights, trademarks, and leases.

False

Trademark registration and search is not costly.

False

Who defined the corporation as "an artificial being, invisible, intangible, and existing only in contemplation of the law." (A) Karl Marx (B) Justice John Marshall (C) Henry Ford (D) Thomas Jefferson

Justice John Marshall

Which of the following is an indicator that an entrepreneur's business is failing? (A) other firms selling advanced products (B) retailer overstocked (C) liquidation (D) R&D budget proportionally less than competition

Liquidation

From where does an S corporation take its name? (A) Subchapter S (B) state law (C) S Lab (D) Uniform Commercial Code

Subchapter S

A copyright provides exclusive rights to creative individuals for the protection of their artistic productions.

True

A patent is an intellectual property right.

True

A trademark is a distinctive name, mark, or symbol that is identified with a company's product.

True

An example of a trademark is a motto.

True

Patents eventually expire.

True

The two parts of a patent application are specification and claims.

True

Three primary legal forms of organization are the sole proprietorship, the partnership, and the corporation.

True

The registration of a trademark last for 40 years, with continuous renewal every 10 years.

False

Entrepreneurs should be knowledgeable about certain legal concepts that affect their business venture.

True

Of the following statements, which is true of sole proprietorships? (A) A sole proprietorship is a business that is owned and operated by one person. (B) Proprietors have limited liability for the operation. (C) Proprietors are taxed as businesses. (D) Ordinarily, proprietorships have amounts of capital available to them equal to that available to other types of business organizations.

a sole proprietorship is a business that is owned and operated by one person

What percentage of issued patents is considered commercially valuable? (A) a very small percentage (B) a very large percentage (C) about a third (D) about half

a very small percentage

How does death affect the duration of a corporation? (A) A corporation usually terminates on the death of a founding shareholder. (B) A corporation is unaffected by the death of a shareholder. (C) A corporation is usually unaffected by the death of a shareholder. (D) A corporation is usually unaffected by the death of a shareholder unless a general partner dies.

a corporation is unaffected by the death of a shareholder

Which of the following is not a trademark? (A) a sales price (B) a logo (C) a symbol (D) a name

a sales price

The part of a patent application that defines and limits the patented invention is known as the (A) specification. (B) illustration. (C) claim. (D) concept.

claim

The part of a patent application that identifies the features that are protected is known as the (A) particular. (B) claim. (C) identification. (D) essence.

claim

A series of short paragraphs, each of which identifies a particular feature that is protected by the patent, are known as_______. (A) claims (B) journals (C) values (D) plans

claims

In the context of trademark invalidation, if a party seeks to prove that a trademark has not been used within six years of registration, it is known as (A) abandonment. (B) cancellation proceedings. (C) cleaning-out procedure. (D) generic meaning.

cleaning-out procedure

The determination of fair use of copyrighted material is based on (A) the effect of use on potential market. (B) the time period involved. (C) specific legal guidelines set forth by OSHA. (D) the GAD doctrine.

the effect of use on potential market