Cengage Advantage Books Business Law Text and Cases The First Course 1st Edition Miller Test Bank Download

Solution Manual for Cengage Advantage Books
Business Law Text and Cases The First Course 1st

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Chapter 8
Intellectual Property Rights
TRUE/FALSE QUESTIONS
B1. More than two hundred years ago, the Declaration of Independence recognized
the importance of protecting creative works.
ANSWER: F PAGES: Introduction

BUSPROG: Reflective AICPA: BB-Legal
B2. A famous trademark may be diluted only by the unauthorized use of an identical
mark.
ANSWER: F PAGES: Section 1

B3. Counterfeit goods copy or otherwise imitate trademarked goods, and they are in
fact sometimes genuine trademarked goods.
1
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
2 TEST BANK B—UNIT TWO: TORTS AND CRIMES

B4. A trade name can be protected under the common law, but only if it is unusual
or fancifully used.
ANSWER: T PAGES: Section 1

B5. States do not have trademark statutes.

BUSPROG: Analytic AICPA: BB-Legal
B6. Trademarks may be registered only with the federal government.

B7. A service mark distinguishes products used by those in public service.

B8. A license permits the use of another’s intellectual property for certain purposes.

B9. A patent applicant must demonstrate that an invention is “commercially feasible”

to receive a patent.

B10. With a few exceptions, almost anything is patentable.

CHAPTER 8: INTELLECTUAL PROPERTY RIGHTS 3
B11. The first person to invent a product obtains the patent rights rather than the first
person to file an application for a patent.

BUSPROG: Analytic AICPA: BB-Critical Thinking
B12. For an infringement of copyright to occur, the reproduction must be exactly the
same as the original.

B13. An exception to liability for copyright infringement is made under the “fair use”
doctrine.

B14. All aspects of software are protected by copyright law.

B15. Technology has limited the potential for copyright infringement via the Internet.

BUSPROG: Technology AICPA: BB-Legal
B16. Protection of trade secrets extends both to ideas and to their expression.

B17. Production techniques are not trade secrets.

B18. The theft of trade secrets is a federal crime.

B19. Under the Anti-Counterfeiting Trade Agreement, member nations are required to
establish border measures that allow officials to search commercial shipments
of imports and exports for counterfeit goods.

B20. Under the Madrid Protocol, a company can register its trademark in more than
one country with a single application.

MULTIPLE-CHOICE QUESTIONS
B1. Savory Bean Company makes and sells a sweet espresso coffee beverage
under the name “Sugar Sugar.” Tropic Roast, Inc., later markets a similar drink
under the name “Sweet Sweet.” This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. not infringement.
ANSWER: C PAGES: Section 1

B2. Effervescent Egg Cream Company’s trademark is used by Fizzy Drinks without
its owner’s permission. Fizzy’s use of the mark is actionable provided that
a. consumers are confused.

b. Fizzy’s use is intentional.
c. Fizzy and Effervescent are competitors.
d. Effervescent’s mark is registered.
ANSWER: A PAGES: Section 1

B3. In 2014, Cloud Computing Corporation registers its trademark as provided by

federal law. After the first renewal, this registration
a. is renewable every ten years.

b. is renewable every twenty years.
c. runs for the life of the corporation plus seventy years.
d. runs forever.

B4. Gold & Sweet Company bottles and sells maple syrup from its plant in Vermont.
On the labels is a logo that states “100% Genuine New England Maple Syrup
Certified by the Northeast Maple Syrup Harvesters Association.” This logo is
a. a certification mark.
b. none of the choices.
c. a service mark.
d. trade dress.

B5. Wendy works as a weather announcer for a TV station under the character name
Weather Wendy. Wendy can register her character’s name as
b. a trade name.
c. a service mark.
d. none of the choices.

B6. René operates The Spicy Chocolatier Café chain of restaurants. “The Spicy
Chocolatier Café” is
b. none of the choices.
c. a service mark.
d. a trade name.
ANSWER: D PAGES: Section 1

B7. Metro Movers Miami Corporation allows Metro Movers Milwaukee Company to
use Metro Movers’ trademark as part of its company advertising. This is
a. a license.
b. a likelihood of consumer confusion.
c. a generic use.
d. trademark dilution.

B8. Odell invents “Profits Unbound,” new stock-trading algorithm software, and
applies for a patent. If Odell is granted a patent, his invention will be protected
a. for ten years.

b. for twenty years.
c. for the life of the inventor plus seventy years.
d. forever.
ANSWER: B PAGES: Section 2

B9. GreatGro, Inc., makes genetically modified seeds with properties that are iden-
tical to Hearty Harvest Corporation’s patented seeds, without Hearty Harvest’s
permission. This is most likely

B10. NoGas, Inc., designs and makes a non-fuel propulsion system that copies parts
of Omni Momentum Corporation’s designs without Omni’s permission. This is
most likely

B11. In 2014, Kelly writes Like the Wind, a novel about marathoners and
ultramarathoners. Kelly does not register the work with the appropriate
government office. Under federal copyright law, Kelly’s work is protected
a. for ten years.

b. for twenty years.
c. for the life of the author plus seventy years.
d. forever.

B12. Milo publishes a book titled No Equals, which includes a chapter from Paige’s
copyrighted book Olympic Champions. Milo’s use of the chapter is actionable
provided that
a. consumers are confused.

b. Milo’s use is intentional.
c. Milo’s use reproduces Paige’s chapter exactly.
d. Milo does not have Paige’s permission.

B13. Edge is a video game featuring interactive extreme sports. The graphics used in
the game are protected by
a. copyright law.
b. patent law.
c. trademark law.
d. none of the choices.

B14. Giancarlo copies Hedrick’s book, Information Free, in its entirety and sells it to
Justice Fair Books, Inc., without Hedrick’s permission. Justice Fair publishes it
under Giancarlo’s name. This is
b. fair use.
c. licensing.
d. protected expression.

B15. Kamal reproduces Lorena’s copyrighted work “Musica” without paying royalties.
Kamal is most likely excepted from liability for copyright infringement under the
“fair use” doctrine if
a. Kamal copies the entire work.

b. Kamal distributes the copies without charge to the public.
c. Kamal’s use has no effect on the market for Lorena’s work.
d. Kamal’s use is for a commercial purpose.

B16. Damien buys a copy of the book Exchange. Later, after reading the book,
Damien sells it to his sister. Under the first sale doctrine, Damien’s sale of the
book is
a. legal.
b. legal only if the copyright has expired.
c. legal only if Damien sells it for less than he paid for it.
d. illegal.

B17. The idea for “Prices & Profit,” an app that businesses can use to control their
revenue, profits, and payrolls, is protected by
a. copyright law.
b. patent law.
c. trademark law.
d. trade secrets law.

B18. Robyn, an employee at Social Media, Inc., is laid off. Before he leaves, he e-
mails Social Media’s marketing campaign to Tweets & Trades Corporation,
Social Media’s competitor, without permission. This is
a. a sneaky but legal method of competing with a business rival.

b. a secretive but lawful way to exact revenge on a supervisor.
c. a simple, legitimate attempt to create a job opportunity.
d. a theft of trade secrets.

B19. Like most successful companies, Pads & Phones, Inc. (P&P), has trade secrets.
The law protects those secrets if
a. P&P employees do not divulge the information to outside parties.

b. P&P employees do not handle confidential documents.
c. P&P employees never leave the company’s employ.
d. the information is unique and has value to a competitor.

B20. Siri downloads and sells, in international markets via the Internet, e-textbooks
without the authors’ or publishers’ permission. The international treaty that
applies to pirated copyrighted works being distributed via the Internet is
a. the Federal Trademark Dilution Act.

b. the Madrid Protocol.
c. the Trade-Related Aspects of Intellectual Property Rights agreement.
d. the Anti-Counterfeiting Trade Agreement.

ESSAY QUESTIONS
B1. In 2005, Recreation & Relaxation Corporation began making and selling all-
terrain vehicles (ATVs) under the mark “R&R.” Ten years later,
recoveryandrehabilitation.com, Inc., a different company selling medical
equipment and supplies, begins to use “R&R” as part of its URL and registers it
as a domain name. Can Recreation & Relaxation stop
recoveryandrehabilitation.com’s use of “R&R”? If so, what must the ATV maker
show?
ANSWER: Recreation & Relaxation may be successful in obtaining a court

order to stop the use of its name as part of another company’s URL and
registered domain name. This use may constitute trademark dilution.
Dilution occurs when a trademark is used, without permission, in a way
that diminishes the distinctive quality of the mark. This cause of action does not
require proof that consumers are likely to be confused by a connection between
the unauthorized use and the mark. The products involved do not have to be
similar. To succeed on a charge of dilution, however, the owner must be able to

show that its mark was famous when the dilution took place.
PAGES: Section 1
BUSPROG: Reflective AICPA: BB-Decision Modeling
B2. Hua plots a new Iron Man adventure and carefully and skillfully imitates the art
of Marvel Comics to create an authentic-looking Iron Man graphic novel. Hua is
not affiliated with the owners of the copyright to Iron Man. Can Hua publish the
novel as his own work without infringing on the owners’ copyright?
ANSWER: Probably not. When the form or expression of an idea is copied, an

infringement of copyright occurs. The reproduction can constitute infringement
even if it is not be exactly the same as the original or does not reproduce the
original in its entirety.
The idea of a superhero crimefighter attired in an iron suit is not
copyrightable, but the particular way in which an idea is expressed (in this case,
in the character of Iron Man) is copyrightable and may not be freely used by
others.
PAGES: Section 3
BUSPROG: Reflective AICPA: BB-Decision Modeling

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Solution Manual for Cengage Advantage Books

Business Law Text and Cases The First Course 1st

Intellectual Property Rights

ANSWER: F PAGES: Introduction

ANSWER: F PAGES: Section 1

ANSWER: F PAGES: Section 1

ANSWER: T PAGES: Section 1

B5. States do not have trademark statutes.

ANSWER: F PAGES: Section 1

B6. Trademarks may be registered only with the federal government.

ANSWER: F PAGES: Section 1

B7. A service mark distinguishes products used by those in public service.

ANSWER: F PAGES: Section 1

ANSWER: T PAGES: Section 1

B9. A patent applicant must demonstrate that an invention is “commercially feasible”

ANSWER: F PAGES: Section 2

B10. With a few exceptions, almost anything is patentable.

ANSWER: T PAGES: Section 2

ANSWER: F PAGES: Section 2

ANSWER: F PAGES: Section 3

ANSWER: T PAGES: Section 3

B14. All aspects of software are protected by copyright law.

ANSWER: F PAGES: Section 3

ANSWER: F PAGES: Section 3

ANSWER: T PAGES: Section 4

B17. Production techniques are not trade secrets.

ANSWER: F PAGES: Section 4

B18. The theft of trade secrets is a federal crime.

ANSWER: T PAGES: Section 4

ANSWER: T PAGES: Section 5

ANSWER: T PAGES: Section 5

ANSWER: C PAGES: Section 1

a. consumers are confused.

ANSWER: A PAGES: Section 1

B3. In 2014, Cloud Computing Corporation registers its trademark as provided by

a. is renewable every ten years.

ANSWER: A PAGES: Section 1

ANSWER: A PAGES: Section 1

ANSWER: C PAGES: Section 1

ANSWER: D PAGES: Section 1

ANSWER: A PAGES: Section 1

a. for ten years.

ANSWER: B PAGES: Section 2

ANSWER: B PAGES: Section 2

ANSWER: B PAGES: Section 2

a. for ten years.

ANSWER: C PAGES: Section 3

a. consumers are confused.

ANSWER: D PAGES: Section 3

ANSWER: A PAGES: Section 3

ANSWER: A PAGES: Section 3

a. Kamal copies the entire work.

ANSWER: C PAGES: Section 3

ANSWER: A PAGES: Section 3

ANSWER: D PAGES: Section 4

a. a sneaky but legal method of competing with a business rival.

ANSWER: D PAGES: Section 4

a. P&P employees do not divulge the information to outside parties.