BLAW 2080 - Exam 2 Study Guide PDF

Title BLAW 2080 - Exam 2 Study Guide
Course Legal Environment of Business
Institution University of Cincinnati
Pages 9
File Size 55.3 KB
File Type PDF
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BLAW 2080 - Exam 2 Study Guide...


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1 1.) Amy Mendoza is a local radio personality who goes by the name "Amy in the A.M." on the air. She also uses that label in print ads to help radio listeners distinguish her show from the other morning radio shows in her town. Amy would be most likely to register her name as a Answer: service mark. 2.) On the Border Mexican restaurants all have the same terracotta and turquoise color scheme, with posters of bullfighters and maps of Mexico on the walls. The restaurants also have identical furniture and menus, the wait staff wear similar types of clothing, and the same music plays in the background. The restaurants have a unique ambience, known in legal terms as their Answer: trade dress. 3.) Hot Products owns a patent for a fan motor that it uses in ceiling fans. Allied Electric uses a fan motor that is identical to Hot's in the air conditioners it manufactures. Allied does not have Hot's permission to use the motor. Can Hot sue Allied for patent infringement? Answer: Yes, because Allied infringed on Hot's patent, 4.) Cason thinks of a new concept for a palm-sized computer notebook. He also thinks of a new, faster process for producing the notebooks. Federal copyright law protects Answer: neither Cason's concept nor his process. 5.) A&O is the software designer of the most popular video game in the country. A&O decides to develop the game into a series and have its best designer, Laz, head the team of programmers working on the next game. Laz quits and goes to work for GameWare, taking some files for the new game with him. Under trade secret laws, A&O has protection for Answer: the information in the files and Laz's ideas for the game design. 6.) A copyright is an intangible property right, meaning that you can touch and feel it. Answer: False 7.) ______ is not copyrightable. Answer: an original idea 8.) In 2014, Sven writes his memoirs called My Life in Lapland. Sven does not register a copyright. Under federal copyright laws, Sven's book is: Answer: protected for his life, plus 70 years. 9.) The white pages of a telephone directory cannot be copyrighted, but the yellow pages might qualify for copyright protection because the: Answer: yellow page information is usually selected and presented in an original way. 10.) In determining "fair use" of copyrighted material, the effect of that use upon the potential market for or value of the copyrighted work is often the most important factor for the courts to consider. Answer: True 11.) Because the Copyright Act has a first-sale doctrine, once you buy a book, you are NOT allowed to resell it. Answer: False 12.) Which example in the following list is unrelated to the concept of intellectual property? Answer: Land

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2 13.) A trademark is a distinctive mark or motto that a manufacturer stamps, prints, or otherwise affixes to its own goods. Answer: True 14.) The most important statutory protection for trademarks is the: Answer: Lanham Act 15.) Syrup Company creates a drink with coffee and chocolate and sells it under the name MochaMerge. Alpha Corporation starts selling a similar product under the name MokaMerge. This is most likely a matter of Answer: trademark infringement. 16.) Pick which of the following names probably will NOT obtain trademark protection. Answer: Fast Speed 17.) Silverado Foods, Inc., wishes to obtain trademark protection for a product it sells that it has named Salad Dressing, but will probably be unable to do so because the phrase is generic. Answer: True 18.) Pierre has a radio show in the evening that he calls "Pierre in the PM" and he uses that label in print ads. Pierre most likely can register "Pierre in the PM" as a Answer: service mark 19.) A chain of organic fast food restaurants uses the same distinctive colors, furniture, labels, logos, and employee uniforms. This unique ambiance is known as trade dress, which is NOT, however, as good as trademark protection. Answer: False 20.) Unless a trade name is used as a trademark or service mark, it cannot be registered with the federal government. Answer: True 21.) Generally, a patent lasts for ____ years. Answer: 20 22.) To be patentable, an invention, discovery, process, or design must be: Answer: novel, useful, and not obvious. 23.) If a business process and information relating to that process cannot be patented, copyrighted, or trademarked against appropriation by competitors, there is nothing that a business can do. Answer: False 24.) Which from the following list is NOT a trade secret: Answer: A marketing logo. 25.) GameBuilder, Inc., has an idea for a new massively multiplayer online game and assigns Tina the task of programming it, which she undertakes. Tina then quits, goes to work for a competitor, and takes the files she has developed. Under trade secrecy laws, GameBuilder, Inc., has protection for: Answer: the information in Tina's files and the ideas Tina has for the game design. 26.) Because there is no contract between an outsider who steals confidential business data by industrial espionage, there can be

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3 no violation of trade secrets. Answer: False 27.) Under all circumstances, the duration of trade secrets is forever. Answer: False 28.) Elliot enters into a contract to purchase JD's house, and then changes her mind. JD sues her for breach of contract. The lawsuit for a breach of contract will be governed by Answer: common law of contracts. 29.) Marcy tells Jessica that she will buy Jessica a new dress if she reads a book by Friday night. Jessica begins reading and has only two chapters left to finish when Marcy tells Jessica that she has changed her mind and will not buy the dress. Under the modern approach to contracts, Marcy and Jessica Answer: formed a unilateral contract as soon as Jessica began reading. 30.) Carol's car was hit while it was parked. Carol calls A-1 Towing, tells the dispatcher the car needs to be towed, and gives her location. Carol never mentions a price and leaves before the tow truck arrives, so she does not talk with the driver or sign any documents. Carol Answer: owes the company for towing her car under an implied contract. 31.) Donald buys a subscription to a national magazine that gives him two years for the price of one year. After the two years expire, Donald continues to receive the magazine for six more months, although he has not subscribed again. The magazine then sends Donald a bill for the magazines he received after the expiration of his subscription. Donald Answer: owes nothing. 32.) Doris, an eighty-seven-year-old widow, collapsed while shopping at a store. She was taken to the Detroit city hospital by ambulance. She stayed there for fourteen days and was then transferred to another hospital, where she later died. She never regained consciousness. After she died, the hospitals and the ambulance company sued her estate to recover their expenses. Will Doris's estate be held liable for the medical bills? Answer: Yes, because there was a quasi contract. 33.) U.S. Bank enters into a new contract with Risk Management Services, Inc. to conduct UCC searches. RMS adds a provision to the contract that states: "RMS's liability is limited to the amount of fee paid for each service provided under this contract." RMS generally charges $25 per UCC search conducted. The first search conducted by RMS for U.S. Bank does not find a UCC lien, but causes U.S. Bank a $1,000,000 loss. U.S. Bank claims that the provision added by RMS is ambiguous. In this scenario, a court would apply which of the following rules of interpretation? Answer: Look to custom usage and trade. 34.) People make promises all the time, so promises have little to do with contract law. Answer: False 35.) At a given point in time, contract law does NOT reflect which of the following? Answer: Our physical well-being 36.) Promises that involve moral obligations are the basis of contract law. Answer: False 37.) A contract is

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4 Answer: a promise or agreement that can be enforced in court. 38.) The objective theory on contracts tells us that a party's intention to enter into a legally binding agreement is judged by the personal belief of at least one of the parties. Answer: False 39.) Requirements to a valid contract do NOT include _____. Answer: A fair price 40.) When a court examines the objective facts surrounding contract formation, which of the following does it NOT examine? Answer: If the party had the flu while negotiating. 41.) If the offeree can accept simply by promising to perform, then the contact is unilateral. Answer: False 42.) Assume that Eva tells Maria that she will buy Maria a new dress if Maria reads a book by Friday night. Maria begins reading but has a chapter left to finish when Eva says she has changed her mind and will not pay for the new dress. Under the modern approach to contracts, Eva and Maria: Answer: formed a unilateral contract as soon as Maria began reading the book. 43.) An implied contract differs from an express contract in that the conduct the parties creates and defines the terms of the contract. Answer: True 44.) Which of the following is NOT a requirement for an implied contract? Answer: The Defendant had no chance to reject the service or property. 45.) Pete calls A-1 Towing when his car won't start. He tells the dispatcher the location of the car, but does not ask for a price and leaves before the tow truck arrives. He obviously does not talk to the driver and does not sign any documents. Therefore, Pete Answer: owes A-1 for towing is car under an implied contract. 46.) You tell your roommate that you will sell him your six-month old Samsung tablet device. You accurately specify its technical details and state that the price is $100. Your roommate accepts your offer, so you two will have a(n) Answer: Express contract. 47.) You tell the gas station attendant to fill up your car with regular and he does so. At this point, the contract between the gas station and you is: Answer: executory because you have yet to pay the attendant. 48.) Ryan sends Michael a letter of intent for the purchase of a tract of land. The letter of intent outlines the purchase price, the legal description, and the financing terms. A paragraph is included that states this is a non-binding agreement, and is an offer to enter into negotiations. Answer: The letter of intent is an invitation to negotiate, which is not an offer. 49.) DeWayne offers to sell some orchard property to Blake. Blake is interested in the property but wants to research orchard management before he buys. DeWayne agrees to hold the offer open for Blake and to stop looking for other buyers for three months in exchange for $3,000. They have an

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5 Answer: option contract. 50.) Kelvin offers to sell Cody his all-terrain vehicle. On Wednesday, Cody sends Kelvin a letter accepting his offer. On Thursday, Cody changes his mind and sends Kelvin a letter rejecting the offer. On Friday, Kelvin receives Cody's rejection. On Sunday, Kelvin sends an offer to sell his ATV to Sam and Sam accepts. On Monday, Kelvin receives Cody's acceptance. Was it reasonable for Kelvin to make an offer of his ATV to Sam on Sunday? Answer: Probably, because the rejection arrived before the acceptance 51.) KJ Games, in Colorado, designs computer games that it markets and sells to customers via the Internet. A click-on agreement accompanies every download; no game can be installed on a buyer's computer if the buyer does not click on the words "I agree" when prompted. The click-on agreement clearly states in capital letters that all disputes will be settled in Colorado's state courts. Buyers of KJ's games are most likely Answer: required to file any lawsuits in Colorado. 52.) Judy Olsen, Kristy Johnston, and their mother, Joyce Johnston, owned seventy-eight acres of real property on Eagle Creek in Meagher County, Montana. When Joyce died, she left her interest in the property to Kristy. Kristy wrote to Judy, offering to buy Judy's interest or to sell her own interest to Judy. The letter said to "please respond to Bruce Townsend." In a letter to Kristy—not to Bruce—Judy accepted Kristy's offer to sell her interest. By that time, however, Kristy had made the same offer to sell her interest to their brother Dave, and he had accepted. After Joyce Johnston's death, who owned the seventy eight acres of property? Answer: Both Judy Olson and Kristy Johnson. 53.) Kristy wrote to Judy, offering to buy Judy's interest or to sell her own interest to Judy. The letter said to "please respond to Bruce Townsend." Who is the offeror? Answer: Kristy 54.) Based on these facts, did Judy accept the offer? Answer: No 55.) In a letter to Kristy—not to Bruce—Judy accepted Kristy's offer to sell her interest. By that time, however, Kristy had made the same offer to sell her interest to their brother Dave, and he had accepted. Did Dave's acceptance terminate Kristy's offer to Judy? Answer: Yes 56.) What if Kristy and Judy were visiting face-to-face and Kristy made the offer to sell her property to Judy and Dave overheard and chimed in "I'll buy it!" before Judy could reply. Does Dave have a contract? Answer: No 57.) Agreement normally is evidenced by an offer and an acceptance. Answer: True 58.) An effective offer does require that a reasonable price be related to market value. Answer: False 59.) Pascal's new Mercedes won't start one morning and he screams to his passenger, "For a thousand bucks, I'd get rid of this car." The passenger normally CANNOT buy the car for $1,000:...


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