Legal & Soc Exam 4

For preauthorized transactions, the bank must follow two rules:

(1) it may not make preauthorized transfers without written instructions from the consumer, and (2) It must allow the consumer to stop payment of the transfer by oral or written notice up to three business days before the scheduled date.

Which of the following are examples of real property? Select all that apply.

-A kitchen faucet -Shed -Field of crops

Landlord-tenant law involves a combination of which three areas of law? Select all that apply.

-Contracts -Tort law -Real property

Which of the following are benefits of registering a trademark? Select all that apply.

-It notifies the public that the mark is in use -It allows for higher damages for infringement than under common law. -It makes the mark valid nationally.

A utility patent would not protect which of the following? Select all that apply.

-Natural process -Asexually reproducible plant -Design of a product

An invention must be which of the following to receive a patent? Select all that apply.

-Patentable subject matter -Novel -Nonobvious -Useful

Which of the following purposes is a court likely to find is covered by the fair use doctrine? Select all that apply.

-Reporting -Parody -Education

Which of the following must be true of an act for it to be deemed an "unfair practice"? Select all that apply.

-The act causes substantial consumer injury. -A consumer could not reasonably avoid the injury caused by the act. -The harm of injury outweighs any benefit from the act.

Which of the following are reasons that a trademark would NOT be legally valid? Select all that apply.

-The mark is a surname -The mark is the same as the generic name for the product -The mark is too similar to an existing trademark. -The mark is offensive or immoral

A zoning board will consider which of the following when deciding whether or not to grant a variance? Select all that apply.

-The nature of the community -The reason the owner claims to be harmed by the ordinance -Response of the community

The Digital Millennium Copyright Act makes it illegal to: (select all that apply)

-circumvent encryption or scrambling devices on copyrighted work -delete copyright information or distribute false copyright information

A QM may not:

-have a term that exceeds 30 years; -provide for points and fees that exceed three percent of the total loan amount; -and have a monthly debt-to-income ratio that exceeds 43 percent.

Laurel leaves her dress at the dry cleaner for 1-hour dry cleaning service. The dry cleaner will be liable to Laurel for damages she suffers if: (select all that apply)

-he does not clean the dress as a reasonably prudent person would -the dress is not cleaned for another 24 hours -he accidentally gives Laurel's dress to another customer

The goal of the Magnuson-Moss Warranty Act is to

-it ensures that consumers understand what the warranty terms are prior to purchasing a good and enables consumers to compare warranty options before buying (among other things). -The Magnuson-Moss Warranty Act does not require merchants or sellers to provide a warranty on any product -enacted to prevent merchants and sellers from offering a warranty that the consumer discovers is meaningless only after purchasing the product.

A court may order that a copyright infringer: (select all that apply)

-not to commit any further violations -destroy the infringing material -pay damages, profits earned, and attorney's fees to the author

A landlord evicts a tenant when the landlord: (select all that apply)

-physically prevents the tenant from possessing the premises. -substantially interferes with the tenant's use and enjoyment of the premises.

A landlord may use a tenant's security deposit for: (select all that apply)

-unpaid rent

Most courts will imply the following provisions into every lease, even if they are not specifically stated in the lease: (select all that apply)

-warranty of habitability -tenant's right of quiet enjoyment. -duty not to use premises for illegal purposes

Which of the following is not an FCRA rule regarding consumer reports?

A consumer report is any communication about a consumer's creditworthiness, character, general reputation, or lifestyle that is considered as a factor in establishing credit, obtaining insurance, securing a job, or acquiring a government license. Consumer reporting agencies are businesses that supply consumer reports to third parties. Under the FCRA: a consumer report can be used only for a legitimate business need; a consumer reporting agency cannot report obsolete information; an employer cannot request a consumer report on any current or potential employee without the employee's permission; and anyone who makes an adverse decision against a consumer because of a credit report must reveal the name and address of the reporting agency that supplied the information. Although a consumer reporting agency must disclose all information in a consumer's file upon the consumer's request, the agency does not have a duty to proactively supply consumers with updated reports.

Tenancy at Sufferance

A lease created when a tenant remains on the premises after the expiration of a true tenancy, against the landlord's wishes

Periodic Tenancy

A lease for a fixed period of time and automatically continues for additional periods until terminated by either party

Tenancy for Years

A lease for a stated, fixed period of time that automatically terminates at the end of the stated period

Tenancy at Will

A lease for no fixed duration that may be terminated by either party at any time

Broxton-King vs. LaSalle Bank

Facts- BK paid a monthly membership to YMCA and was automatically deducted from her bank account- BK closed account on Aug. 31st, but on Sep. 1st the bank again charged the monthly membership fee and charged her an overdraft because there was no money in her account- Bank sent BK notice of the overdraft, and BK told the bank that because she closed her account, the transaction should be stopped and no future payments should be made- On Oct. 1, the bank again automatically withdrew and charged an overdraft, so BK sued that the bank violated the Electronic Funds Transfer Act by making unauthorized transactionsIssue- Did the bank violate the EFTA?Conclusion- No, because BK did not provide the bank adequate notice of her account closure

A bailment must involve a written agreement to be enforceable. (T/F)?

False

A patent holder has the right to prohibit others from using the patented invention, but cannot recover money damages for patent infringement. (T/F)?

False

Business methods are generally patentable, but the courts have developed a complex system of qualifications that limit the availability of business method patents. (T/F)?

False

If Reuben borrows Sally's cookbook and while Reuben still has the cookbook, Sally decides she would like to give it to him, Sally must request that Reuben return the book so that she can deliver it to him with the intent to transfer ownership in order for there to be an effective gift. (T/F)?

False

In most states, if a donee refuses a donor's gift, the donee has 24 hours to change her mind and accept the gift. (T/F)

False

Sellers must issue a full refund if products ordered over the phone or internet do not arrive within 45 days. (T/F)?

False

The Economic Espionage Act of 1996 makes a person civilly liable for attempting to steal trade secrets for the benefit of someone other than the owner.

False

To be able to prove that a landlord violated the implied (T/F)?

False

Under a tenancy at sufferance, a landlord is entitled to either evict a tenant or receive rent from the tenant. (T/F)?

False

When partitioning property, courts will first seek to sell the property and divide the proceeds from the sale equally among the co-tenants. (T/F)?

False

f a property owner rejects the government's offer of a "fair price" for property being taken by eminent domain, then the owner waives his right to compensation for the property. (T/F)?

False

Bailor in a mutual-benefit bailment

Liable for known defects and defects that could be discovered with reasonable diligence

Bailor in a bailment for the sole benefit of the bailee

Liable for known defects in goods

Bailor in a bailment for the sole benefit of bailor

Liable only for gross negligence

Brandi wants to send her good friend Lisa a sweater for Lisa's beloved pet dog. If Brandi hands the sweater to ___________ with instructions to pass it to Lisa, she has effectively delivered the sweater to Lisa.

Lisa's dog walker

In 2008, Morgan invents a new kind of clasp for bracelets that makes them easier to put on using one hand and begins selling them locally. In 2010, a major jewelry manufacturer sees one of Morgan's clasps and begins producing and selling them on a large scale and at a lower price than Morgan's. If Morgan files for a patent on her clasp, will her application be approved?

No, because Morgan did not file within one year of her first sale of her invention

Sally conceives of a zero-point gravity machine, which can power cars, air-condition homes, and even cities. Can Sally obtain a patent on her idea?

No, unless she first makes some tangible form of the machine.

Which of the following activities does NOT create a bailment?

Parking your car in a "park and lock" parking lot.

Which of the following is not a duty that a landlord owes to a tenant?

Perform all repairs

Which of the following is not a right included with the issuance of a federal patent?

Right to prevent the patented process or design from ever being used.

The Truth in Lending Act does all of the following EXCEPT

TILA does not set interest rates. It does require disclosures to enable consumers to compare costs of credit offered, provide rescission rights for some transactions, and impose restrictions on home equity lines of credit (as a result of the Homeownership and Equity Protection Act).

CSPCA

The CPSA created the Consumer Product Safety Commission to evaluate consumer products and develop safety standards. Under the CPSC, manufacturers must report all potentially hazardous product defects within 24 hours of discovery.

A lender may make all of the disclosures required under the Truth in Lending Act and still violate TILA if

The company made all the required disclosures but scattered them throughout the loan document and intermixed them with confusing terms that were not required by TILA. All disclosures required by TILA must be made clearly.

A creditor must provide the TILA disclosure within how many business days after receipt of a residential mortgage loan application?

Three

Which of the following is not a required disclosure under the Truth in Lending Act?

Title charges

A copyright in the U.S. is valid until 70 years after the death of the work's last living author. If the author is a corporation, a copyright is valid for 95 years from publication or 120 years from creation, whichever is shorter. (T/F)?

True

A person or company that misappropriates a trade secret is liable to the owner for a reasonably royalty

True

Advertisers can use pre-recorded or auto-dialed messages to telemarket only in very limited ways. (T/F)?

True

If a bailor establishes that a bailment was created and that the property involved was damaged, the burden of proof shifts to the bailee to prove that the bailee exercised the appropriate level of due care with respect to the property. (T/F)?

True

In addition to providing property that the tenant can use for the intended purpose, the landlord has an obligation to maintain the premises to a particular legal standard. (T/F)?

True

The FTC may determine that a business practice is unfair because it violates public policy, as it did with rent-to-own arrangements for merchandise. (T/F)?

True

The Truth in Lending Act requires lenders to make certain disclosures to potential borrowers and imposes certain limits on interest rates and other key terms of loans. (T/F)?

True

The holding in Diamond v. Chakrabarty established that living organisms are patentable as long as they were created or significantly modified from their natural form by human intervention. (T/F)?

True

Under FTC rules, a buyer has a right to cancel a purchase made from a door-to-door salesperson within three days after making the purchase and the salesperson must notify the consumer of this right. (T/F)?

True

Unless the parties specifically indicate otherwise, a court will treat co-owners of property as tenants-in-common. (T/F)?

True

While inter vivos gifts are irrevocable, a gift made in contemplation of the donor's death can be revoked by the donor at any time and is automatically revoked if the donor recovers. (T/F)?

True

Which of the following must be true of a transaction in order for the Truth in Lending Act to apply? Select all that apply.

Truth-in-Lending applies to loans made to individuals for personal, family, or household purposes. For personal property loans the law only applies if the loan does not exceed $25,000. For residential real property loans the law applies regardless of the loan amount. It does not apply to business, agricultural or commercial loans or loans made to partnerships, corporations, etc. The lender must disclose all finance charges (loan fees, finder's fees paid to the person bringing the borrower to the lender, service charges, points, mortgage insurance premiums and interest). He must add these charges together and calculate them as a percentage of the loan balances during the term of the loan to arrive at an "annual percentage rate" (APR). The APR can then be used as a means of comparing costs among lenders. Actual costs not retained by lenders (title fees, legal fees, closing costs, property taxes, appraisal fees, recording fees, notary fees, etc.) are not considered finance charges and are not included in the APR.

Trademark

affixed to goods in interstate commerce

Under the common law, a landlord is not liable for latent defects in the property once the landlord notifies the tenant of the condition. The modern trend is to

apply normal negligence rules to a landlord's liability for property defects

A work becomes copyrighted:

automatically when it is put into a tangible form.

A tenant may be fined for violating a lease covenant, but may be evicted for violating a

condition

Wilma wants to donate her large sailboat to a local community boating club. Wilma writes a note transferring title of the boat to the boat club and mails it to the boat club's office. Wilma has effected

constructive delivery

Fanciful mark

entirely made-up word

A(n) ____________________ in a lease gives the landlord the right to increase the rent during the term of the lease under certain circumstances, such as an increase in the property taxes on the premises.

escalator clause

Arbitrary mark

existing word that does not describe the product

The _____________ is an important exception to the limited use of copyrighted material without permission of the author

fair use doctrine

To qualify as a trade secret, the information must be a company's particular secrets, not

general secrets of the trade in which the company is engaged

Jerry handed a check for $1,000,000 to Jean and told her that she and her family would never need to worry about money again. Jerry would be able to demand the money back if

he gave Jean the check when HE was on his deathbed, and has miraculously recovered

Collective mark

identifies members of an organization

Service mark

identifies services

Suggestive mark

indirectly describes the product's function

Joint tenancy

may convey to third party during life; interest passes to other tenants upon death

Tenancy in common

may convey to third party; interest passes to heirs upon death

Sarah orders her favorite shampoo from an online boutique. When the product arrives, a bottle of expensive perfume is also in the box. Sarah

may keep the perfume and treat it as a gift

Tenancy by entirety

no independent right to convey; interest passes to spouse upon death

Adam and Angela park their car in a vacant lot, which is owned by Donald Trump. When Adam and Angela return, they find that their car is in shambles with broken windows and slashed tires. Donald Trump is

not liable to Adam and Angela for the damage because there was no bailment created

A tenant's right to use the rented property without the interference of the landlord or other tenants is referred to as the right

of quiet enjoyment

Small loans with very high interest rates made to people in need of immediate money are referred to as

payday loans

A bailee's primary right is:

possession of the property

Federal Trade Commission

regulates a wide range of business activities that affect consumers

Consumer Financial Bureau

regulates consumer financial products and services

Easement

right to enter and make limited use of another's property

Profit

right to enter and take something away from another's land

Trademark Law Treaty

simplifies and harmonizes the process of applying for trademarks around the world

Paris Convention

six-month grace period to file in other countries with the same original filing date once registering in a signatory country

The CFPB has the authority to take action against those committing "abusive acts," which are defined as

taking unreasonable advantage of consumers' lack of understanding the material risks, costs, or conditions of a good or service

One of the ways a trademark owner can prove infringement is by establishing that others have used the mark in a way that

tarnishes the mark by association with unwholesome goods or services

License

temporary right to enter another's property

A copyright protects

the author's tangible expression of an idea

Someone who wrongfully takes property from a bailee is liable to

the bailee

When considering whether a use of copyrighted work is protected by the fair use doctrine, a court will consider not only how much of the work is used, but whether the part used is

the most important part of the work

One of the benefits of the Patent Cooperation Treaty (PCT) is

the option to receive an "international search report" that provides evidence of the patentability of the invention to accompany patent applications in member countries

Credit card companies must apply a consumer's credit card payment

to a consumer's highest interest rate balances first (say, a cash advance, rather than a new purchase)

Madrid Agreement

trademark registered with international registry is valid in all signatory countries

Certification mark

word or symbol used by person or organization to attest that products meet certain standards