Business Law Final
A "C corporation" is the professor's recommended form for a new business startup. (True or False)
False
A promise to refrain from smoking cannot be legal consideration because it does not convey anything of economic value to the other party. (True or False)
False
A sole proprietorship and a partnership are essentially the same with the the difference that sole proprietorship allows for multiple parties in the business. (True or False)
False
An "S Corporation" can offer shares publicly (i.e. on a public stock exchange). (True or False)
False
Contracts must always be in writing to be enforceable. (True or False)
False
Generally speaking, advertisements are considered to be offers. (True or False)
False
Offers that fail to provide a specific time for acceptance are invalid because they are deemed to be indefinite. (True or False)
False
The general rule on the duration of a copyright is that it lasts for 50 years from the time the copyrighted work was created and fixed in tangible form. (True or False)
False
To hold a trademark for a product, you do NOT need to actually sell the product. (True or False)
False
An LLC has the benefit of limited liability, limited debt risk, and pass-through taxation. (True or False)
True
Customer lists are not patentable but may be subject to trade secret protection. (True or False)
True
Even though no one else had developed an invention like that of the patent applicant, the application will be denied if, at the time of the invention, the invention would have been obvious to a person having ordinary skill in the area. (True or False)
True
Generally, the terms of a standardized contract are negotiable. (True or False)
True
Mutual mistake (both parties were mistaken) is more likely to make a contract voidable than is unilateral mistake (one party is mistaken). (True or False)
True
Passthrough taxation allows for business income and losses to be included in your personal taxes. (True or False)
True
The essence of a contract is that it is a legally enforceable promise or set of promises. (True or False)
True
The three requirements for a valid offer are: present intent to contract, definiteness, and communication to the offeree. (True or False)
True
Which of the following is NOT a limitation of the sole proprietorship and partnership? Select one: a. The owner is personally responsible for business debt. b. To start one, the owner must file with the secretary of state and pay a $165 fee. No. This is a requirement for an LLC or corporate. The owner does not need to file anything. c. The owner is personally responsible for business liability.
b. To start one, the owner must file with the secretary of state and pay a $165 fee. No. This is a requirement for an LLC or corporate. The owner does not need to file anything.
Which type of marks is most likely to be registered for trademark protection? Select one: a. Suggestive b. Generic c. Arbitrary d. Descriptive
c. Arbitrary
Which type of marks is LEAST likely to be registered for trademark protection? Select one: a. Suggestive b. Arbitrary c. Generic d. Descriptive
c. Generic
How long is the legal temporary monopoly that present patent laws provide to the inventor after the filing of the patent application? Select one: a. 10 years b. Lifetime of the inventor c. 70 years d. 20 years
d. 20 years
Any word, name, symbol, device, or combination thereof used by a manufacturer or seller to identify its products and distinguish them from the products of competitors is called a: Select one: a. Copyright b. Patent c. Signature d. Trademark
d. Trademark
A copyright comes into existence upon the: Select one: a. creation of an idea. b. creation of a message. c. creation of a protected work. d. creation and fixing of a protected work.
d. creation and fixing of a protected work.
Patent _____ occurs when a defendant, without authorization from the patentee, usurps the patentee's rights by making, using, or selling the patented invention. Select one: a. assignment b. licensing c. violation d. infringement
d. infringement