55. Goods sold by an authorized dealer beyond the dealer‘s authorized territory or quantity are:
a. knockoff goods.
b. gray market goods.
c. infringed goods.
d. none of the above
56. Registration of a trademark in a Madrid member country is:
a. effective for that country only.
b. effective for all Madrid member countries.
c. not effective in the United States.
d. protected under the Berne convention.
57. Which of the following is not an element of disparagement?
a. untrue statement
b. publication
c. damages
d. intent to injure
e. All of the above are elements.
58. Palming off:
a. is the same as trademark infringement.
b. requires proof of the likelihood of confusion.
c. is a statutory protection in competition.
d. is a federal crime.
e. none of the above
59. Trade secrets:
a. are registered for 14 years.
b. are good for 75 years.
c. need not be registered to be protected.
d. are the same as trademarks.
60. Misappropriation requires proof of:
a. unauthorized use of a product or process.
b. infringement.
c. an existing copyright.
d. an existing trademark.
61. The golden arches of McDonald’s restaurants are an example of:
a. a patent.
b. a copyright.
c. a license.
d. trade dress.
62. Patents are:
a. 20–year legal monopolies.
b. good for the lifetime of the inventor plus 50 years.
c. not protected by any federal statutes for infringement.
d. none of the above
63. “M & M‘s” brand candy is:
a. an example of a trademark.
b. an example of a generic label not entitled to trademark protection.
c. a trademark protectable for 17 years.
d. none of the above
64. Which of the following is a generic term?
a. Honey Maid graham crackers
b. Nintendo video games
c. cola
d. Jell-O brand gelatin
65. Which of the following are generic terms?
a. cellophane
b. aspirin
c. thermos
d. All of the above are generic terms.
66. What types of remedies are available for patent infringement?
a. injunctions
b. damages
c. specific performance
d. a. and b.
67. To be patentable, an idea must be which of these?
a. Obvious
b. Intangible
c. Useful
d. All of the above
68. The Supreme Court has held that developing a method for creating something that exists in nature
patent laws.
a. is
b. is not
c. cannot
d. should not
protected by
69. If a major company buys one subscription to a journal for all of its employees to copy and share, the company:
a. is not liable for anything under the fair use doctrine.
b. is liable for infringement.
c. is not liable for infringement, but is liable for a trade secret violation.
d. is not liable because this is clearly an educational use.
70. The Sonny Bono Copyright Extension Act:
a. does not apply to individual copyright ownership.
b. does not apply to corporate copyright ownership.
c. does not provide protection for movies.
d. extended the time for the federal copyright protection to 70 years beyond the life of the creator/author.
e. none of the above
71. The Digital Millennium Copyright Act:
a. makes it a criminal offense to create programs to circumvent encoded copyrighted materials.
b. does not impose liability on those who provide Internet access to employees.
c. does not impose liability for circumvention of encoding of copyrighted materials for personal use.
d. both b and c
e. none of the above
72. Professor Winona Wright has just read an article in Fortune magazine about issues in the Enron bankruptcy. She
wishes to share it with her class that morning and makes 50 copies to distribute to them. Professor Wright:
a. has infringed Fortune’s copyright.
b. has utilized the fair use exemption under copyright law.
c. has done nothing in violation of copyright law because magazine articles are not protected under copyright
law.
d. none of the above
73. Trade dress:
a. can be protected if there will be confusion.
b. can be protected only if there is a registered trade name or trademark.
c. can be protected if it is distinct.
d. none of the above
74. What of the following could be protected as a trade secret?
a. chemical formula
b. supply chain management system of a company
c. customer list
d. All of the above are examples of trade secrets.
75. Which of the following is/are generic term(s)?
a. Band-Aid
b. Jell-O
c. Aspirin
d. All of the above are generic.
76. The Uniform Electronic Transaction Act (UETA):
a. has been adopted in all 50 states.
b. has been declared unconstitutional.
c. is the same as E-sign.
d. none of the above
77. Ted’s Red Hots is a hot dog restaurant that has the shape of a hot dog in a bun, with the hot dog wearing a white
chef’s hat at one end. Wally’s is a new hot dog restaurant that has a wiener dog shape with the wiener dog wearing
a white chef’s hat. Ted’s probably has an infringement claim based on:
a. patent appropriation.
b. trade dress appropriation.
c. copyright infringement.
d. any of the above
78. The Trademark Dilution Act provides a remedy for:
a. commercial use of another’s trademark.
b. too many trademarks being registered.
c. overuse of a trademark.
d. none of the above
79. The “likelihood of confusion” standard is used:
a. in copyright cases.
b. in patent cases.
c. in trademark infringement cases.
d. none of the above
80. At Anne’s Beauty Emporium, Della operates a small store-within-a-store in which she sells bags that appear to be
designer Prada and Gucci handbags. The bags are priced at Della’s at between $65 and $190 each. The price for
the same Prada and Gucci bags in department stores would be between $325 and $900. Della is probably selling:
a. knock-off purses.
b. gray market purses.
c. counterfeit purses.
d. all of the above
81. Copying an article from a computer science journal that sells subscriptions and then distributing it to 25 employees at
your company:
a. would be fair use.
b. would be copyright infringement.
c. would not be copyright infringement unless you charged the employees for the copies.
d. none of the above
82. Yanni’s Yachts has created a specially designed awning for its boats. Yanni’s did not patent the yawning. Dream
Boats purchased one of Yanni’s boats and then copied the yawning from the boat it purchased from Yanni.
a. Dream Boats has appropriated a trade secret.
b. Dream Boats has appropriated a patent because a patent need not be registered to be valid.
c. Dream Boats has misappropriated Yanni’s awnings.
d. none of the above
83. Trade secrets:
a. cannot be registered.
b. do not carry remedies if they are taken by former employees.
c. are not a form of property and cannot be stolen.
d. none of the above
84. Louis Vuitton is a manufacturer of luggage, purses, wallets, and briefcases and is internationally known for its classic
LV design on its products. Vuitton has authorized two U.S. importers to handle its products with the caveat that the
products are to be sold only in the finer department stores and Vuitton-authorized dealers and franchises. One dealer
has been selling the Vuitton products at substantial discounts to a wholesaler in the Los Angeles garment district.
Discuss Vuitton’s rights in this situation.
85. Chicago Roller Skate has purchased an inexpensive indoor rollerskate from a Taiwanese manufacturer. Brookfield
Athletic Shoes alleges that its patent for its unique wheel plate is infringed by the Taiwanese model. Discuss the
issues of infringement as well as the issues of international protections of patented products.
86. During the late 1980s, a number of homeowners purchased satellite dishes in order to gain access to all forms of
television programming (without the additional costs of cable and cable access fees). The pay-TV channels then
scrambled their signals, and the owners find that their satellite dishes offer them no more stations than regular TV.
Discuss the ownership rights in this situation. Were the satellite dishes an ethical and legal issue when they were sold
to the homeowners in the first place?
87. John W. Carson, better known as Johnny Carson, was the host and star of “The Tonight Show.” His announcer used
the phrase “Here‘s Johnny“ to introduce Mr. Carson from the time the first show appeared in 1957. Carson licensed
the phrase for use with a clothing line he endorsed as well as a line of men‘s toiletries. In 1976, a Michigan
corporation began manufacturing and selling portable toilets for use at construction sites and at large outdoor events.
The toilets were called, “Here’s Johnny! portable toilets!” The company also used the phrase, “the world’s foremost
commodian” in describing its product. Mr. Carson filed suit. What would be the basis of his lawsuit?
88. Discuss the rights of the film companies to collect royalties from the rental of their films at local video stores.
89. Discuss the potential penalties under the Industrial Espionage Act.
90. Why are the terms “cellophane,” “aspirin,” and “thermos” generic? What changes a tradename or trademarked item
to a generic term?
91. FluRight is a flu medicine developed by Medic, Inc. The packaging for FluRight bears an uncanny resemblance to
the number one flu medicine on the market. The bottle is the same shape and the colors and type on the box are the
same. Customers note that they have to look closely to see which brand they are buying. Describe the rights of the
company that has the number one brand against Medic, Inc.
92. AOL use the phrase “You’ve got mail!” to signal its customers that there is mail in their electronic accounts. AT&T
began using the phrase, “You have mail!” for its customers. AOL brought suit against AT&T for trademark
infringement. Has there been infringement?
93. “Jordache” was a trademark for designer jeans that were popular in the 1980s. A manufacturer that produced jeans
for larger-sized women named their jean product “Lardashe” and used a smiling pig as part of its logo with its name.
The Jordache Company brought suit against Lardashe for trademark infringement. Which of the following best
describes how the court dealt with the issue?
a. The court issued an injunction against Lardashe to stop using the name.
b. The court dismissed the claim because there was not a likelihood of confusion of the brand.
c. The court dismissed the action because a name cannot be a trademark.
d. The court dismissed the action because clothing is not subject to trademark identification.
94. Cheong Choon Ng, the owner of Rainbow Loom, developed a rubber-band jewelery making kit that has a distinctive
trade dress C-shaped clip that allows kids to connect loops of rubber bands to form bracelets. The looming
technique in the kit dates back to the 1800s when the technique of looping knits was called Brunnian Links. Mr. Ng
says he developed the C-Clip as he watched his daughters trying to make bracelets out of tiny rubber bands. After
three years of enjoying a monopoly on a hot-selling craft item, Mr. Ng faced competition from FunLoom. Mr. Ng
has filed suit against FunLoom for copying the C clip in its craft kit for the rubber band bracelets. Which of the
following statements by the owner of FunLoom would be the best avenue for defense against the infringement suit
by Rainbow Loom?
a. “Our clip is larger.”
b. “It works the same, but it isn’t the same. It just looks like it.”
c. “Is a loom something new and novel? It isn’t.”
d. “This issue should be decided by competition, not the courts.”
95. What would be the basis of the suit?
a. Trade Name
b. Trademark
c. Copyright
d. both a and b
96. What would be the film makers’ best defense in the suit against them by the author?
a. That the idea of a Fort Apache is general in terms of the nature of a battle and not a unique idea.
b. That the name of the film is different.
c. That the use of an idea in a film is not an infringement of an idea in a book.
d. That book names are not protected by statute.
97. The novel One Fine Day told the story of a man trapped in a repeating day, forced to live the same day over and
over. The movie “Groundhog Day,” also featured a man caught in a repeating day. The novel was dark and
introspective, while the film was a romantic comedy. In a suit by the author of the book against the film makers,
which of the following would be important?
a. That any similarities between the two works related general ideas, concepts or abstractions.
b. That the film was made first.
c. That the screenwriters for the film had read the book.
d. All of the above would be important.