Business Law Chapter 33 Jason And Stacey The Movie Theater

Document Type
Test Prep
Book Title
Cengage Advantage Books: Essentials of Business Law 5th Edition
Authors
Jeffrey F. Beatty, Susan S. Samuelson
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1. A patent is available for an idea as well as a tangible application.
a.
True
b.
False
2. A copyright is valid for 28 years after it is obtained and can be renewed for another 28 years.
a.
True
b.
False
3. Provisional patents are good for one year.
a.
True
b.
False
4. A design patent protects the appearance of an item and is valid for 14 years.
a.
True
b.
False
5. Martina developed a new type of apple tree which could be reproduced through grafting. She cannot protect her rights
in this tree by obtaining a plant patent since the tree cannot be reproduced by planting its seeds.
a.
True
b.
False
6. In a recent case, In re Nuijten, the U.S. appeals court ruled that a method of encoding additional information on
electronic signals emitted from digital audio files was not patentable because, although useful, the method was not a
mechanical, electrical, or chemical invention, a process, a machine, or the composition of matter.
a.
True
b.
False
7. Unlike with patents, the ideas underlying copyrighted material need not be novel.
a.
True
b.
False
8. Under the "fair use doctrine," instructors cannot be liable for copyright violations.
a.
True
b.
False
9. Southern Bar-B-Q owns a special, secret recipe for sauce which it guards because it gives the restaurant a competitive
advantage. If Mort willfully misappropriates the recipe, a court may hold him liable to Southern for double damages.
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a.
True
b.
False
10. The name “Johnson Garage Doors” cannot be a trademark because a surname is already being used and other people
have the right to continue to use the name.
a.
True
b.
False
11. The Supreme Court has held that parody of copyrighted material is a per se violation of copyright law.
a.
True
b.
False
12. Christy and Sylvester trade movies by downloading each other’s movie files. If the copyrighted material has a retail
value greater than $1,000, Christy and Sylvester are subject to criminal penalties under the No Electronic Theft Act, even
if they had no profit motive in reproducing the movies.
a.
True
b.
False
13. If a trademarked name acquires a generic meaning, the owner of the trademark loses protection.
a.
True
b.
False
14. In hopes of speeding up the approval process and making it more accurate, the Patent and Trademark Office has begun
a pilot program which allows anyone to participate in the patent approval process.
a.
True
b.
False
15. A color cannot be trademarked since it cannot be kept from use by other businesses.
a.
True
b.
False
16. The requirements for a patent include all EXCEPT:
a.
the invention must be novel.
b.
the invention must be nonobvious.
c.
the invention must be commercially valuable.
d.
the invention must be useful.
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17. The advantages of trademark registration include all EXCEPT:
a.
potential damages are higher.
b.
after five years the mark becomes almost impossible to challenge.
c.
it allows the trademark owner to use the TM symbol to put others on notice of the protection.
d.
the mark is valid nationally.
18. Which of the following is correct?
19. In order for a copyright holder to collect money damages from a person who used copyrighted material, it must be
proven that:
a.
the infringement was intentional.
b.
the copyright holder sustained more than $500 in actual damages.
c.
the copyrighted material contained the copyright symbol, name of the copyright holder, and the year of
copyright.
d.
None of the above.
20. Janice wrote a song called "Feelings of Love." She wrote the piano score and lyrics for a class she was taking at
college and turned it into her professor.
a.
Janice's song was automatically copyrighted when she wrote it down on paper.
b.
If Janice wishes to enforce her copyright, she must first register her song with the Copyright Office.
c.
Both of the above are correct.
d.
Neither a nor b.
21. The Basic Books, Inc. v. Kinko's Graphic Corp. case held:
a.
professors could print and sell lengthy course packets of copyrighted material under the "fair use" doctrine.
b.
professors could not print and sell lengthy course packets of copyrighted material under the "fair use" doctrine.
c.
professors could not use commercial printing companies under the "fair use" doctrine.
d.
None of the above.
22. The Good Housekeeping Seal of Approval is an example of a:
a.
trademark.
b.
service mark.
c.
collective mark.
d.
certification mark.
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23. Which of the following words could be registered as a trademark?
a.
Crunchy peanut butter.
b.
Low-fat peanut butter.
c.
Green peas.
d.
yStar peanuts.
24. Intellectual property:
a.
producers are likely to be adequately paid in the free market.
b.
production is not subsidized by the government.
c.
typically is expensive to produce but cheap to reproduce and transmit.
d.
typically is expensive to produce, copy, and transmit.
25. Richard wrote a song called "College Days." He copyrighted the composition and had it professionally printed. A
couple years later he was attending a business meeting about 1500 miles from his home. While sitting in a nightclub, he
heard a small local band perform a song called "College Memories." The music and words were extremely similar to his
song. The composer of "College Memories" claims he never heard of Richard's song and that she is offended he would
accuse her of stealing his work. If Richard wishes to sue for copyright infringement, he must prove:
a.
only that his song and the infringer's song are substantially the same.
b.
that his work was original, and the infringer actually copied his work or that the infringer had access to his
song and that the two works are substantially the same.
c.
that he sustained money damages as a result of the infringement.
d.
that he registered the song for a copyright.
26. If Cub Cadet wins a trademark infringement suit by proving the defendant’s trademark, Kub Kadet, is likely to
deceive customers about who made the goods, Cub Cadet is entitled to:
a.
up to three times actual damages.
b.
an injunction to prevent further infringement.
c.
any profits Kub Kadet made on its infringing product.
d.
All of the above.
27. AVCO used a famous registered trademark of BNC, Inc. in a manner that reduced its value. This is a violation of the:
a.
Federal Fair Use Act.
b.
Federal Trademark Dilution Act.
c.
Federal Trade Protection Act.
d.
Cleveland/Myer Act.
28. What is the name of the treaty that allows American patents to be recognized and enforced in member countries?
a.
The Paris Convention for the Protection of Industrial Property.
b.
The International Treaty of Trademarks and Patents.
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c.
The World Agreement of London.
d.
The Berne Convention.
29. Jack goes to Fast Copy Center and pays to have 40 copies of a textbook made. Jack then sells the photocopied
versions of the book to fellow students for $60 a copy (as opposed to the $95 textbook price). The textbook author learns
of this and sues Jack and the copy center. Which statement is correct?
a.
Jack and the copy center are both liable to the author.
b.
Jack is liable to the author but the copy center is not.
c.
The copy center is liable to the author but Jack is not.
d.
Neither the copy center nor Jack is liable to the author.
30. A college professor copies seven chapters from a book called "How to Get Better GradesA Creative Approach to
College Success!" There are ten chapters in the book. She incorporates this material into a packet of material that is
printed in her college's copy center. The packet is then placed in the local book store and is placed on the required
materials list for students to purchase. The author of the book on getting better grades believes the professor has violated
his copyright.
a.
The author is right. The professor should not have copied the chapters and placed them for sale in the
bookstore.
b.
The author is technically correct. However, even though an infringement occurred, he cannot sue the professor
since educational personnel are exempt from liability under copyright law.
c.
The author is not correct. Under the "fair use doctrine" a college professor can copy material and distribute it
to students for educational purposes.
d.
The author is not correct. It does not appear that the professor actually made any money from the alleged
copyright infringement.
31. Monic, a college professor, makes 30 photocopies of a magazine article and passes the article out to her students. The
students are assigned to read the article and write an opinion paper about it. Has Monic violated copyright law?
a.
Yes. Though the author will probably not enforce his or her rights under this situation, Monic has technically
violated federal copyright law.
b.
Yes. Though educators have a right under the "fair use doctrine" to make limited use of copyrighted materials,
Monic violated the law when she made photocopies of an entire article and distributed them to her students.
c.
No. Monic has acted within the fair use doctrine.
d.
No, as up to 50 photocopies of articles are always permissible.
32. Ernest invents a novel, useful, nonobvious product. He:
a.
must apply for a patent within one year of selling the product commercially.
b.
is entitled to a patent over someone else who invents the same product if he is the first to get a company to
produce it commercially.
c.
may receive patent protection for two years by filing a simpler, shorter, cheaper provisional patent application
while he is working on his complex, regular patent application.
d.
may sell his product for up to five years to see how well it sells before going through the complex process of
filing a patent application with the PTO Office.
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33. James and his band played a very familiar song. However, they made up different words for the song that were
intended to be funny. James's version of the popular song with different words is known as:
a.
a "knock off."
b.
a parody.
c.
a "mockarama."
d.
a "link."
34. Jason and Stacey go to the movie theater and decide to use a camcorder to film the show so they can watch it again
with their friends later at home. They have:
a.
made an ethical, legal, wise economic decision since the cost of viewing the movie in the theater again is too
high for their limited budget.
b.
violated the Family Entertainment and Copyright Act, and committed a criminal offense.
c.
violated the No Electronic Theft Act.
d.
committed an illegal act by violating the Digital Millennium Copyright Act.
35. International copyright protection:
a.
is automatic for works created in member countries of the Berne Convention.
b.
is granted for the life of the author plus 70 years under the Berne Convention.
c.
is not yet available for computer programs.
d.
lacks any enforcement capability for overseas infringement of works authored in the United States.
36. McDonald's famous golden arches and other marks used by the company illustrate a:
a.
suggestive mark.
b.
service mark.
c.
certification mark.
d.
collective mark.
37. Victoria registered a trademark under the Lanham Act. Six years later Don noticed Victoria's trademark and filed a
lawsuit to enjoin her from using it. He proved he had registered the mark in several states more than ten years before
Victoria obtained her trademark. Will Don prevail?
a.
Probably. Victoria should have conducted a better search of trademarks registered under state laws.
b.
Yes. Federal law specifically states a federal trademark is not valid for any lawful owner of the same mark
under state law.
c.
No. Don will not prevail and Victoria can continue to use the mark because she has been using it for more than
5 years.
d.
None of the above.
38. Which of the following started out as a trademark name?
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a.
Zipper.
b.
Linoleum.
c.
Nylon.
d.
All the above.
39. A company's trade secret lasts for:
a.
20 years after the application is filed.
b.
70 years after the death of the creator.
c.
10 years, but it can be renewed for an unlimited number of terms as long as it is used.
d.
as long as it is kept confidential.
40. A trademark lasts for:
a.
20 years after the application is filed.
b.
70 years after the death of the creator.
c.
10 years, but it can be renewed for an unlimited number of terms as long as it is used.
d.
as long as it is kept confidential.
41. Rick wrote a song entitled "Wonderful." At the bottom of the first page of music he wrote 1990 by Rick Reed."
Four months later a local band was playing his song at a bar. Rick felt that the bar was an inappropriate setting for his
music. What is his remedy?
42. Explain what a domain name is. Discuss if and how a domain name can be registered as a trademark or if a trademark
can be registered as a domain name.
43. Identify the main provisions of the Digital Millennium Copyright Act and two arguments opponents of the Act raise.
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44. List the four different types of "marks" that can be protected under trademark law. Explain how each mark is used.
45. Briefly define a patent, copyright, and trademark and distinguish among them.
46. Derrick buys a CD, but after listening to it, decides he doesn’t like the music. May he legally sell the CD to someone
else? If he thinks his cousin would enjoy the music, may he legally copy the CD for her?

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