Business Law Today 8th Edition by Miller – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 5

 

 

Intellectual Property

and Internet Law

 

 

 

	N.B.:  TYPE indicates that a question is new, modified, or unchanged, as follows.   N      A question new to this edition of the Test Bank. +       A question modified from the previous edition of the Test Bank, =       A question included in the previous edition of the Test Bank.

 

true/false questions

 

1. In Case 5.1, The Coca-Cola Co. v. The Koke Co. of America, the United States Supreme Court upheld an injunction prohibiting competing beverage companies from calling their products “Koke.”

 

ANSWER:         T                               PAGE:        139                           TYPE:         =

NAT: AACSB Communication     LOC:  AICPA Legal

 

2. To establish trademark dilution, an alleged infringer’s use of a mark identical to a “famous” mark must actually reduce the value of that mark.

 

answer:         f                               PAGE:        140                           TYPE:         N

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

3. Federal law prohibits the unauthorized commercial use of a trademark.

 

ANSWER:         T                               PAGE:        140                           TYPE:         +

NAT: AACSB Analytic                                    LOC:  AICPA Legal

 

4. The unauthorized use of a “famous” trademark is prohibited only if the unauthorized user competes directly with the owner of the mark.

 

ANSWER:         F                               PAGE:        140                           TYPE:         N

NAT: AACSB Reflective                                LOC:  AICPA Legal

5. An applicant cannot register a trademark on the basis of an intention to use the mark in commerce.

 

ANSWER:         F                               PAGE:        141                           TYPE:         +

NAT: AACSB Analytic                                    LOC:  AICPA Legal

 

6. A fanciful use of ordinary words may be trademarked.

 

ANSWER:         T                               PAGE:        142                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

7. An arbitrary use of ordinary words may not be trademarked.

 

ANSWER:         F                               PAGE:        142                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

8. A suggestive use of ordinary words may not be trademarked.

 

            ANSWER:         F                               PAGE:        142                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

9. A personal name is protected under trademark law if it acquires a secondary meaning.

 

ANSWER:         T                               PAGE:        142                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

10. A generic term is not protected under trademark law unless it acquires a secondary meaning.

 

ANSWER:         F                               PAGE:        142                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

11. A service mark is used to distinguish products produced by the federal government from those produced by private corporations.

 

            ANSWER:         F                               PAGE:        143                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

12. A certification mark is used to distinguish products produced by the federal government from those produced by private corporations.

 

ANSWER:         F                               PAGE:        143                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

13. A collective mark is used to distinguish the services of one person or company from those of another.

 

ANSWER:         F                               PAGE:        143                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

14. Trade dress has the same legal protection as trademarks.

 

answer:         t                               PAGE:        143                           TYPE:         N

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

15. A trade name cannot be registered with the federal government if it is also a trademark.

 

ANSWER:         F                               PAGE:        144                           TYPE:         +

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

16. Because the Internet is vast, the unauthorized use of another’s mark in a domain name is generally permissible.

 

ANSWER:         F                               PAGE:        145                           TYPE:         N

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

17. A dilution cause of action requires proof that consumers are likely to be confused by a connection between a trademark and its unauthorized use.

 

ANSWER:         F                               PAGE:        146                           TYPE:         =

NAT: AACSB Analytic                                    LOC:  AICPA Legal

 

18. A patent applicant must demonstrate that the invention, discovery, or design is commercially practicable to receive a patent.

 

ANSWER:         F                               PAGE:        146                           TYPE:         =

NAT: AACSB Analytic                                    LOC:  AICPA Legal

 

19. In the United States, a patent is given to the first person to invent a product or process.

 

ANSWER:         T                               PAGE:        146                           TYPE:         +

NAT: AACSB Analytic                                    LOC:  AICPA Legal

 

20. In the United States, a patent is given to the first person to file for it.

 

            ANSWER:         F                               PAGE:        146                           TYPE:         +

NAT: AACSB Analytic                                    LOC:  AICPA Legal

 

21. A patent cannot be obtained for a plant or an animal.

 

ANSWER:         F                               PAGE:        147                           TYPE:         N

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

22. Patent infringement occurs only if an invention is copied in its entirety.

 

ANSWER:         F                               PAGE:        149                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

23. It is possible to copyright an idea.

 

ANSWER:         F                               PAGE:        151                           TYPE:         +

NAT: AACSB Reflective                                LOC:  AICPA Critical Thinking

 

24. In determining whether copyright protection should be granted, what is copyrightable is the particular way in which an idea is expressed.

 

answer:         F                               PAGE:        151                           TYPE:         N

NAT: AACSB Analytic                                    LOC:  AICPA Critical Thinking

 

25. A person can reproduce copyrighted material for purposes such as teaching, including multiple copies for classroom use, without paying royalties.

 

ANSWER:         T                               PAGE:        152                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

26. In determining whether a use of a copyrighted work is infringement under the “fair use” doctrine, the least important factor is the effect of the use on the market for the work.

 

ANSWER:         F                               PAGE:        152                           TYPE:         +

NAT: AACSB Analytic                                    LOC:  AICPA Critical Thinking

 

27. Loading a file into a computer’s random access memory constitutes the making of a “copy” for purposes of copyright law.

 

ANSWER:         T                               PAGE:        155                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

28. Intentionally taking and distributing pirated, copyrighted works to oth­ers is a crime.

 

answer:         t                               PAGE:        155                           TYPE:         +

NAT: AACSB Analytic                                    LOC:  AICPA Legal

 

29. A formula for a chemical compound can be a trade secret.

 

ANSWER:         T                               PAGE:        159                           TYPE:         +

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

30. A list of customers cannot be a trade secret.

 

ANSWER:         F                               PAGE:        159                           TYPE:         +

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

31. Pricing information cannot be a trade secret.

 

ANSWER:         F                               PAGE:        159                           TYPE:         +

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

32. The theft of trade secrets is not a crime unless a contract is breached.

 

ANSWER:         F                               PAGE:        159                           TYPE:         N

NAT: AACSB Analytic                                    LOC:  AICPA Critical Thinking

 

33. An American who writes a book has copyright protection in every country in the world.

 

ANSWER:         F                               PAGE:        161                           TYPE:         =

NAT: AACSB Analytic                                    LOC:  AICPA Legal

 

34. Each member country of the TRIPS agreement must include in its domestic laws broad intellectual property rights.

 

ANSWER:         T                               PAGE:        161                           TYPE:         =

NAT: AACSB Analytic                                    LOC:  AICPA Legal

 

35. The TRIPS agreement includes copyright protection for computer programs.

 

ANSWER:         T                               PAGE:        161                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

 

MULTIPLE-CHOICE questions

 

1. Jill develops a new espresso machine, which she names “Quik Shot.” She also writes the operating manual. Jill can obtain trademark protection for

 

1. the espresso machine only.
2. the espresso machine, the name, and the operating manual.
3. the name only.
4. the operating manual only.

 

ANSWER:         C                               PAGE:        139                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

2. In Case 5.1, The Coca-Cola Co. v. The Koke Co. of America, when the Koke Company of America marketed its cola product under the name “Koke,” it infringed the Coca-Cola Company’s

 

1. copyright.
2. patent.
3. trademark.
4. trade secret.

 

ANSWER:         C                               PAGE:        139                           TYPE:         N

NAT: AACSB Communication     LOC:  AICPA Legal

 

3. Copy Products, Inc., uses, in its ads, a trademark that is similar, but not identical, to a distinctive mark used by Durable Goods, Inc. Copy’s use of the mark is actionable

 

1. only if consumers are confused.
2. only if Copy and Durable are competitors.
3. only if consumers are confused and Copy and Durable are competitors.
4. regardless of whether consumers are confused or Copy and Durable are competitors.

 

ANSWER:         D                               PAGE:        140                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

4. In 2009, Digito E Corporation renews its trademark registration as provided by federal law. This registration provides protection

 

1. for ten years.
2. for twenty years.
3. for the life of the corporation plus seventy years.
4. forever.

 

ANSWER:         A                               PAGE:        141                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

5. Original, Inc., sells its product under the name “Phido.” Quik Corporation begins to market an identical product under the name “Fido.” This is

 

1. copyright infringement.
2. patent infringement.
3. trademark infringement.
4. none of the choices.

 

ANSWER:         C                               PAGE:        141                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

6. Aero Cola features Bubbly Cola’s trademark without its owner’s permission. Dana buys a bottle of Aero Cola. The mark has been infringed by

 

1. Aero.
2. Bubbly.
3. Dana.
4. none of the choices.

 

ANSWER:         A                               PAGE:        141                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

7. Standard Corporation can not claim a trademark in the phrase “Quality Is Standard” if the phrase

 

1. has a secondary meaning.
2. is descriptive.
3. is generic.
4. is memorable.

 

            ANSWER:         C                               PAGE:        142                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

8. USA Transport Company uses a mark associated with its name to distinguish its services from those of other transport firms. The mark is

 

1. a certification mark.
2. a collective mark.
3. a service mark.
4. trade dress.

 

ANSWER:         C                               PAGE:        143                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

9. Modern Clothing, Inc., and National Denim Corporation use the mark “Made by Members of the U.S. Textile Workers Union” on the tags of their products to indicate the participation of the union in the manufacture. Modern and National are not in business together and do not own this mark. The mark is

 

1. a certification mark.
2. a collective mark.
3. a service mark.
4. trade dress.

 

ANSWER:         B                               PAGE:        143                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

10. Finest Products Company and Great Goods, Inc., use the mark “Good Housekeeping Seal of Approval” to certify the quality of their products. Finest and Great are not in business together and do not own this mark. The mark is

 

1. a certification mark.
2. a collective mark.
3. a service mark.
4. trade dress.

 

ANSWER:         A                               PAGE:        143                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

11. Ernie’s Good Eatin’ Cafe uses a distinctive decor, layout, menu, and style of service. This restaurant’s image and overall appearance is

 

1. a certification mark.
2. a collective mark.
3. a service mark.
4. trade dress.

 

ANSWER:         D                               PAGE:        143                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

12. George owns Murphy’s Grill, a restaurant in a small town in Ohio. Without George’s consent, Food Business, Inc., opens a club in New York City called Murphy’s and begins to use “murphys” as part of the URL for the club’s Web site. Food Business has committed

 

1. copyright infringement.
2. patent infringement.
3. trademark dilution.
4. none of the choices.

 

            ANSWER:         D                               PAGE:        145                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

13. Delightful Toys, Inc., makes EZ Goo, a children’s toy. Without Delightful’s consent, Fast Adhesives Company begins to use “ezgoo” as part of the URL for Fast’s Web site. Fast claims that no consumer would confuse the Web site with the toy. Fast has committed

 

1. copyright infringement.
2. patent infringement.
3. trademark dilution.
4. none of the choices.

 

ANSWER:         C                               PAGE:        146                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

14. Phil invents new Web site design software and applies for a patent. If Phil is granted a patent, his invention will be protected

 

1. for ten years.
2. for twenty years.
3. for the life of the inventor plus seventy years.
4. forever.

 

ANSWER:         B                               PAGE:        146                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

15. Gamma Corporation allows Kappa Company to use Gamma’s trademark as part of Kappa’s domain name. This is

 

1. a license.
2. an injunction.
3. dilution.
4. litigious.

 

ANSWER:         A                               PAGE:        146                           TYPE:         N

NAT: AACSB Reflective                                LOC:  AICPA Legal

16. Rory designs a new computer hard drive, which he names “Sci Phi.” He also writes the operating manual to be included with each final product. Rory could obtain patent protection for

 

1. the hard drive only.
2. the name only.
3. the operating manual only.
4. the hard drive, the name, and the operating manual.

 

answer:         A                               PAGE:        147                           TYPE:         N

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

17. Delta, Inc., copies Eagle Corporation’s patented invention in its entirety. Delta sells it as its own invention to First Products Company, without Eagle’s permission. Eagle’s patent is infringed by

 

1. Delta and First.
2. Delta only.
3. First only.
4. neither Delta nor First.

 

ANSWER:         B                               PAGE:        149                           TYPE:         +

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

18. Energo, Inc., designs and makes a fuel injection system that copies Fuel-In Corporation’s designs without Fuel-In’s permis­sion. This is most likely

 

1. copyright infringement.
2. patent infringement.
3. service mark infringement.
4. trademark infringement.

 

answer:         B                               PAGE:        149                           TYPE:         N

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

19. Precise Factory Machinery, Inc., obtains a patent on a drill press. Quackley Equipment Company copies the design. This patent is infringed

 

1. only if Quackley copies the press in its entirety.
2. only if Quackley sells the press in the market.
3. only if Quackley copies the press in its entirety and sells it.
4. regardless of whether Quackley copies the press in its entirety or sells it.

 

answer:         D                               PAGE:        149                           TYPE:         +

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

20. In 2009, Sara writes Terror at the Track, a novel about racecar driving. Sara does not register the work with the appropriate government office. Under federal copyright law, Sara’s work is protected

 

1. for ten years.
2. for twenty years.
3. for the life of the author plus seventy years.
4. forever.

 

ANSWER:         C                               PAGE:        150                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

21. Fiona invents a new deep-sea fishing net, which she names “Great Catch.” She also writes the operating manual to be included with each net. Fiona could obtain copyright protection for

 

1. the manual only.
2. the name only.
3. the net only.
4. the manual, the net, and the name.

 

ANSWER:         A                               PAGE:        151                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

22. The graphics used in “Go!,” a handheld computer game featuring racecars, are protected by

 

1. copyright law.
2. patent law.
3. trademark law.
4. trade secrets law.

 

ANSWER:         A                               PAGE:        151                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

23. Ellen publishes a book titled First Place, which includes a chapter from Frank’s copyrighted book Great Racecar Drivers without his permission. Ellen’s use of the chapter is actionable

 

1. only if consumers are confused.
2. only if Ellen and Frank are competitors.
3. only if consumers are confused and Ellen and Frank are competitors.
4. regardless of whether consumers are confused or Ellen and Frank are competitors.

 

ANSWER:         D                               PAGE:        152                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

24. Cathy uses, on her new recording Drive By, the melody of a song written by Earl, without Earl’s permission. This is

 

1. copyright infringement.
2. patent infringement.
3. trademark infringement.
4. none of the choices.

 

ANSWER:         A                               PAGE:        152                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

25. Rita copies Sam’s book, Two for the Show, in its entirety and sells it to USA Books, Inc., without Sam’s permission. USA publishes it under Rita’s name. Sam’s copyright is infringed by

 

1. Rita only.
2. USA only.
3. Rita and USA.
4. none of the choices.

 

ANSWER:         C                               PAGE:        152                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

26. Carol buys Dan’s book, Expedition!, photocopies more than half of it without his permission, and sells the copies without paying him royalties. This is

 

1. copyright infringement.
2. fair use.
3. licensing.
4. protected expression.

 

ANSWER:         A                               PAGE:        152                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

27. Donna makes and distributes copies of Every Good Boy Does Fine, a movie copyrighted by Great Films Corporation, without Great Films’ permission. Donna may be liable for

 

1. damages, fines, or imprisonment.
2. damages only.
3. fines or imprisonment only.
4. nothing.

 

ANSWER:         A                               PAGE:        152                           TYPE:         N

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

28. Lex reproduces Mina’s copyrighted work without paying royalties. Lex is most likely excepted from liability for copyright infringement under the “fair use” doctrine if

 

1. Lex copies the entire work.
2. Lex distributes the copies freely to the public.
3. Lex’s use has no effect on the market for Mina’s work.
4. Lex’s use is for a commercial purpose.

 

ANSWER:         C                               PAGE:        152                           TYPE:         N

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

29. Blog magazine buys and publishes an article by Cleo. Later, Blog markets a Web site database that contains a compilation of Blog articles, including Cleo’s, without her consent. Blog has committed

 

1. copyright infringement.
2. patent infringement.
3. theft of trade secrets.
4. trademark infringement.

 

ANSWER:         A                               PAGE:        155                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

30. Abby and Ben copy and exchange MP3 music files over the Internet without anyone’s permission. With respect to songs owned by Charter Recording Company, this is

 

1. copyright infringement.
2. fair use.
3. licensing.
4. protected expression.

 

ANSWER:         A                               PAGE:        157                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

31. The process behind the production of “Fast Pace,” a racecar video game, is protected by

 

1. copyright law.
2. patent law.
3. trademark law.
4. trade secrets law.

 

ANSWER:         D                               PAGE:        159                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

32. The idea for “On Your Mark,” a computer game featuring racing cars, is protected by

 

1. copyright law.
2. patent law.
3. trademark law.
4. trade secrets law.

 

ANSWER:         D                               PAGE:        159                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

33. Peak Corporation hacks into Quality Data Company’s computers and downloads confidential business data. There is no contract between Peak and Quality regarding the data. This is

 

1. patent infringement .
2. trademark infringement.
3. trade secrets theft.
4. none of the choices.

 

ANSWER:         C                               PAGE:        160                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

34. Canada and the United States are signatories of the Berne Convention. Doug, a citizen of Canada, publishes a book first in Canada and then in the United States. Doug’s copyright must be recognized by

 

1. all of the signatories of the Berne Convention.
2. Canada and the United States only.
3. Canada only.
4. none of the signatories of the Berne Convention.

 

answer:         A                               PAGE:        161                           TYPE:         N

NAT: AACSB Reflective                                LOC:  AICPA Legal

 

35. Jiffy Software, Inc., a U.S. manufacturer, files a suit against Kawa, Ltd., a Japanese software maker, for the infringement of intellectual property rights under Japan’s national laws. Under the TRIPS agreement, Jiffy is entitled to receive

 

1. better treatment than Kawa.
2. the same treatment as Kawa.
3. worse treatment than Kawa.
4. nothing.

 

ANSWER:         B                               PAGE:        161                           TYPE:         =

NAT: AACSB Reflective                                LOC:  AICPA Legal

ESSAY questions

 

1. Hawk Corporation begins making and selling motorcycles in 1995 under the mark “Hawk.” Ten years later, Hawk.com, Inc., a differ­ent company selling medical equipment and supplies, begins to use “hawk” as part of its URL and registers it as a domain name. Can Hawk Corporation stop Hawk.com’s use of “hawk”? If so, what must the motorcycle-maker show?

 

ANSWER:         Hawk may be successful in obtaining an 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. As in this problem, the products in­volved do not have to be similar. To succeed on a charge of dilution, how­ever, a mark must be shown to have been famous when the dilution took place.

 

PAGE:  146                                                      type:   N

NAT: AACSB Reflective                                LOC:  AICPA Decision Modeling

 

2. Max plots a new Batman adventure and carefully and skillfully imitates the art of DC Comics to create an authentic-looking Batman comic. Max is not affiliated with the owners of the copyright to Batman. Can Max pub­lish the comic without infringing on the owners’ copyright?

 

ANSWER:         Probably not. The idea of a superhero crime fighter attired in tights and cape is not copyrightable, but the particular way in which an idea is expressed (in this case, in the character of Batman) is copy­rightable and may not be freely used by others. When the form or expres­sion of an idea is copied, an infringement of copyright occurs. The repro­duction does not have to be exactly the same as the original nor repro­duce the original in its entirety to constitute infringement.

 

PAGES: 150–154                                                          type:               N

NAT: AACSB Reflective                                LOC:  AICPA Decision Modeling