Intro to Business Law - Final Exam Review Pt. 1

Which of these issues may impact a company's operations? (a)all of these issues can impact operations (b)ethical issues (c)legal issues (d)international issues (e)political issues

(a)

Private parties can obtain search-and-seizure orders to grab counterfeit goods under the: (a) Lanham Act (b) Sherman Act (c) Counterfeit Goods Act (d) Fifth Amendment (e) Copyright Infringement Act

(a) Lanham Act

Which of the following is not a category of trademarks: (a) all of the other choices are categories of marks (b) arbitrary and fanciful (c) generic (d) suggestive (e) descriptive

(a) all of the other choices are categories of marks

A trademark would not include a: (a) all of the other choices could be trademarks (b) word (c) phrase (d) design (e) name

(a) all of the other choices could be trademarks

Unlike federal judges, most state judges: (a) none of the other choices are correct (b) cannot be married (c) cannot be impeached (d) serve for life (e) can only be impeached for criminal offenses

(a) none of the other choices are correct

Which is the correct order of stages for a typical lawsuit: (a) pleadings, discovery, pretrial, trial, appeals (b) discovery, pretrial, trial, pleadings, appeals (c) pretrial, pleadings, discovery, trial, appeals (d) discovery, pleadings, pretrial, trial, appeals (e) pleadings, pretrial, discovery, trial, appeals

(a) pleadings, discovery, pretrial, trial, appeals

Most tort suits are filed in: (a) state courts (b) municipal courts (c) federal courts (d) small claims courts (e) appellate courts

(a) state courts

Trade dress refers to: (a) a private symbol that concerns the heritage of a family (b) a commercial symbol that concerns the "look and feel" of a product (c) a company's dress code (d) a commercial symbol that concerns the production of a product (e) a private symbol that concerns the "look and feel" of a company's reputation

(b) a commercial symbol that concerns the "look and feel" of a product

Business organizations lobby Congress to impose federal statutory limits on tort damages because they claim that: (a) none of the other specific choices are correct (b) all of the other specific choices are correct (c) many of the awards are unjustified (d) many of the awards are excessive (e) the costs of the awards are making American business less competitive

(b) all of the other specific choices are correct

For the Supreme Court to agree to review a case: (a) only one justice must agree to review the case (b) at least four justices must agree to review the case (c) none of the other choices are correct (d) the President must ask the Court to review the case (e) at least two justices must agree to review the case

(b) at least four justices must agree to review the case

The party who hears a law suit is the: (a) state (b) judge (c) plaintiff (d) bailiff (e) defendant

(b) judge

Cybersquatting is restricted by: (a) the Bill of Rights (b) the Anticybersquatting Consumer Protection Act (c) the Antiwebsquatting Consumer Protection Act (d) the Sherman Act (e) the National Cybersquatting Act

(b) the Anticybersquatting Consumer Protection Act

The sine qua non rule or but for rule is that: (a) the injury occurred because of the tortfeasor's lack of knowledge (b) the injury would not have occurred but for the conduct of the tortfeasor (c) none of the other choices (d) the injury is the fault of the tortfeasor (e) the injury would not have occurred if the victim had known the tortfeasor

(b) the injury would not have occurred but for the conduct of the tortfeasor

The ____ is responsible for issuing patents. (a) Commissioner of Intellectual Property (b) Supreme Court (c) Commissioner of Patents and Trademarks (d) Secretary of State (e) Protector of Property

(c) Commissioner of Patents and Trademarks

Which is not a form of intellectual property? (a) copyrights (b) patents (c) buildings (d) trademarks (e) trade secrets

(c) buildings

____ is property that may be invisible and impossible to hold. (a) temporary property (b) actual property (c) intangible property (d) good property (e) real property

(c) intangible property

Juries in tort cases often award large sums of money because: (a) all tort cases involve serious injury so compensation is always large (b) people on juries consistently dislike business (c) juries place a high value on the enforcement of legal rights (d) juries lack understanding of how much damages are worth (e) none of the other choices

(c) juries place a high value on the enforcement of legal rights

Counterfeit goods: (a) may be sold so long as identified as "not original" (b) none of the other choices (c) may be seized and destroyed (d) may be sold so long as identified as "not approved" (e) may be sold so long as identified as "not genuine"

(c) may be seized and destroyed

A warranty is: (a) a legal document limiting how much a manufacturer can be sued for if a product fails (b) a consumer's agreement not to misuse a product (c) none of the other choices are correct (d) a legal document absolving a manufacturer of liability (e) a manufacturer's assurance that a product will be below a certain cost

(c) none of the other choices are correct

An implied warranty is: (a) one the manufacturer contractually provides to the consumer (b) illegal in many states (c) one the law inserts into the relationship regardless of the actual contract terms (d) none of the other choices are correct (e) one the consumer insists on

(c) one the law inserts into the relationship regardless of the actual contract terms

The term privity of contract refers to: (a) the requirement that products liability litigation must be brought by private citizens (b) the risk that a product is of adequate legal quality (c) the relationship that exists between the parties to a contract (d) damage awards provided by juries in products liability cases (e) the requirement that products liability law have its origin in the common law of contracts

(c) the relationship that exists between the parties to a contract

Federal judges are nominated by: (a) the Senate (b) the House of Representatives (c) the Congress (d) the President (e) the state legislatures

(d) The President

A tort is NOT: (a) conduct that unreasonably interferes with the interests of another (b) a civil wrong, other than a breach of contract (c) none of the other choices (d) a criminal act (e) a breach of duty owned to another that causes harm

(d) a criminal act

The party who is sued in a law suit is the: (a) bailiff (b) plaintiff (c) judge (d) defendant (e) state

(d) defendant

Scienter is: (a) the lack of intent to defraud (b) the intent to befriend (c) the ability to defraud (d) none of the other choices are correct (e) the intent to prosecute

(d) none of the other choices are correct

The party who files a law suit is the: (a) bailiff (b) defendant (c) state (d) none of the other choices are correct (e) judge

(d) none of the other choices are correct

An express warranty is: (a) illegal in many states (b) one the law inserts into the relationship regardless of the actual contract terms (c) none of the other choices are correct (d) one the manufacturer contractually provides to the consumer (e) one the consumer insists on

(d) one the manufacturer contractually provides to the consumer

A major purpose of tort law is to: (a) replace the insurance industry (b) ensure the effective operation of the Due Process Clause (c) impose criminal penalties on the negligent (d) provide compensation for injured parties by wrongdoers (e) ensure Equal Protection of the 14th Amendment is operational

(d) provide compensation for injured parties by wrongdoers

The registration process of trademarks is provided by: (a) the Trademark Act (b) the Carver Act (c) the Second Amendment (d) the Lanham Act (e) the Intellectual Property Act

(d) the Lanham Act

Marks become generic when: (a) the holders of the mark make over $1 million in profit (b) the Supreme Court issue an order (c) none of the other choices are correct (d) the holders of marks give up protecting them (e) 5 years have passed since the mark was registered

(d) the holders of marks give up protecting them

The ____ is responsible for registering copyrights. (a) Intellectual Property Office (b) Commissioner of Patents and Trademarks (c) Commissioner of Patents and Copyrights (d) Patent Office (e) Copyright Office

(e) Copyright Office

A tort is: (a) a criminal act (b) a felony (c) none of the other choices (d) negligent injury that can result in fines or imprisonment for less than one year (e) a civil wrong not a breach of contract

(e) a civil wrong not a breach of contract

Negligence torts differ from intentional torts in that: (a) none of the other choices (b) the victim does not receive compensation in a negligence tort case (c) intentional torts are also felonies (d) the government is the prosecutor in negligence torts (e) in negligence the harmful results of a person's conduct are not intentional

(e) in negligence the harmful results of a person's conduct are not intentional

Trademarks, trade names, patents, and copyrights represent a category of property called: (a) tangible property (b) personal property (c) statutory property (d) real property (e) intangible property

(e) intangible property

Meddling with another's business in an unreasonable and improper manner to improve one's own place in the market it an example of the tort of: (a) interference with intent (b) none of the other choices (c) interference with competition (d) interference with business practices (e) interference with prospective advantage

(e) interference with prospective advantage

Infringement is: (a) using legally obtained intellectual property for criminal activity (b) none of the other choices are correct (c) wrongful use of intellectual property with the owner's permission (d) wrongful, authorized use of intellectual property in violation of the owner's rights (e) wrongful, unauthorized use of intellectual property in violation of the owner's rights

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

A service mark is: (a) none of the other choices are correct (b) a catchphrase (c) a symbol that can be traded between companies (d) an illegal trademark (e) a trademark for a service

???

An example of a generic trademark is: (a) Dairy Queen (b) none of the other choices (c) Clorox (d) Raisin Bran (e) Bufferin

???

Cybersquatting is restricted by: (a) the Lanham Act (b) the Bill of Rights (c) the Antiwebsquatting Consumer Protection Act (d)none of the other choices are correct (e) the Sherman Act

???

Defenses to a negligent act include: (a) all of the other choices (b) existence of proximate cause (c) assumption of the risk (d) res ipsa loquitur (e) existence of a substantial factor

???

Key element(s) of the tort of intentional interference with contractual relations is (are): (a) the defendant intentionally interfered with a contract between the injured party and another party (b) all of the other specific choices (c) a warranty of performance in a contract is breached (d) malice by the defendant must be shown (e) a contract between the injured party and the defendant who interfered

???

Which of the following is an example of intangible property: (a) land (b) all of the other specific choices are correct (c) trade secrets (d) computers (e) furniture

???

____ trademarks are not favored by the law and must be shown to have acquired customer recognition to be given legal protection. (a) arbitrary and fanciful (b) descriptive (c) generic (d) suggestive (e) none of the other choices

???

"Clorox" is a generic mark.

False

A company cannot be a defendant in a tort suit since a firm is not a natural person.

False

A suit tried in federal court must use federal law to resolve the matter; a suit tried in state court must use state law to resolve the matter.

False

About 80 percent of the total costs involved in tort litigation goes to awards to plaintiffs (injured parties).

False

All torts, which are civil matters, are also potentially criminal acts.

False

Assault is a direct, intentional, uninvited physical contact without consent.

False

Businesses, because they are not legal persons, may not cause a tort, only humans.

False

By law, shareholders in a corporation must be given stock certificates as a sign of formal ownership.

False

If a producer did not foresee a possible danger with a product that does, in fact, cause injury, the producer cannot be held negligent in tort.

False

In determining negligence, the law applies a reasonable-person standard, which requires a person to use extra-ordinary care in their actions.

False

In most courts the tort of emotional distress requires evidence of physical injury to the victim.

False

Libel involves spoken defamatory communication.

False

Negligence in product liability suits means the defendant is found to have intended to produce a substandard, unsafe product.

False

Negligence in tort may be imposed only if a party acted improperly. A failure to act cannot itself lead to a tort.

False

Once a word is registered as a trademark, it may not be used in commerce for any other good.

False

Only federal statutes may violate the Constitution.

False

Shareholders have the right to instruct directors or top managers how to run the corporation.

False

Suggestive trademarks receive the highest level of legal protection for marks.

False

The Constitution requires that all juries be composed of twelve persons.

False

The Federal Rules of Civil Procedure are used in many state court systems to set procedure in state courts.

False

The articles of incorporation filed with the state must include the bylaws that will govern the operation of the corporation.

False

The articles of incorporation set the rules that regulate the internal structure of a corporation.

False

Trade secrets can be shared with all employees in a firm so long as all are told that it is a trade secret.

False

Trade secrets include any information that a company has worked diligently to keep secret from competitors.

False

When a plaintiff files an action against a defendant, it is called the notification.`

False

When an assault occurs, a battery also occurs.

False

While interfering with an existing contractual relationship can be a tort, if a contract has not yet been formed, there can be no tort.

False

"Zipper" is an arbitrary and fanciful mark.

True

A close corporation is one that has a small number of shareholders.

True

A public corporation is one that trades shares on stock markets.

True

A robber holds up a store with a gun. The store owner shoots the robber in the leg. The robber sues in tort for the injuries intentionally inflicted on him. The owner has a defense that protects him from liability.

True

A suit involving a dispute for $45,000 over a contract signed in California under California law with parties from two different states would be tried in a California court using California law.

True

Compensatory damages are intended to give injured parties to restore them to the economic position they were in before they suffered an injury.

True

Corporations are not provided Fifth Amendment protection against self incrimination.

True

Corporations may sue and be sued in the name of the business itself.

True

If a company owns trade secrets it may require employees to sign contracts promising not to use the trade secrets they learn at work elsewhere and holding the employees liable if they do.

True

In Bowman v. Monsanto, where Bowman used Monsanto's patented Roundup Ready seeds and, in violation of the contract provided by Monsanto, kept seeds from his crop to use next year so that the seeds had the genetic composition of the Monsanto seeds. The Supreme Court held that Bowman violated the terms of purchase of a patented product.

True

In a suit for intentional misrepresentation, punitive damages may be awarded.

True

In equity, courts may order specific performance as a remedy.

True

Intentional misrepresentation is also known as fraud.

True

Interrogatories are written questions submitted by the opposing party.

True

Joint and several liability is liability rule in several states that allows each defendant to be potentially liable for the entire damage award when more than one firm have a similar defective product.

True

One reason companies often settle suits out of court is to protect executives from taking time to give depositions on behalf of the company.

True

Res ipsa loquitur means "the thing speaks for itself."

True

The Constitution created the U.S. Supreme Court and authorized it to establish lower courts as needed.

True

The Constitution guarantees a right to a jury trial in criminal cases.

True

The U.S. judicial system is considered to be "adversarial."

True

The Uniform Arbitration Act has been adopted by most states to encourage the use of arbitration.

True

The case Erie v. Tompkins, involving a man hit by a train in Pennsylvania, holds that federal courts must apply either state common law or state statutory law in resolving disputes between citizens of different states.

True

The plaintiff's answer to claims made by the defendant against the plaintiff is known as a reply.

True

To be liable of a tort in negligence, one must have owed a duty of care to the party who suffered an injury.

True

To win a case based on strict liability against a producer, the plaintiff must show that the product was defective, that a defect in it caused it to be dangerous, and the defect was the proximate cause of the injury.

True

Tort law evolves through time by court decisions that reflect social values and community standards.

True

Tort law is intended to try to put an injured party in the position he would have been in if the tort had not occurred.

True

Truth is a very strong defense to a defamation action.

True

Wrongful use of intellectual property may produce a suit in tort for infringement.

True