Legal Environment to business

Question 1

10 points Save

Which of the following would not be a misappropriation of a trade secret?

Paying an engineer who is working at a competitor to disclose the trade secret to you

Buying the competitor’s product, then tearing it apart and analyzing it in your laboratory to reveal the trade secret

Hiring a spy to break into a competitor’s offices to acquire the secret

Asking one of your current engineers to disclose a trade secret of her former employer, which she then does

Question 2 10 points Save

Patent applications are filed with the:

State Patent and Trademark Office.

World Trade Organization.

U.S. Patent and Trademark Office.

U.S. State Department

Question 3 10 points Save

The public use doctrine is also called:

Patent infringement.

Public utility.

Limited label license doctrine.

One-year “on sale” doctrine

Question 4 10 points Save

The fair use doctrine would allow the following types of use of a copyrighted work without the permission of he copyright holder, except:

Quotation in a critical review.

Use in a parody.

Sale of a single chapter that is the only chapter of interest to most persons in a particular locale.

Use by a teacher to illustrate a point in a class.

Question 5 10 points Save

John has invented a device to monitor the tire pressure on bicycle tires. This device consists of a tire pressure sensor on the tire with a radio transmitter and a receiver mounted on the handlebars to give a readout of the pressure. The radio transmitter is similar to existing designs, but one has never been used in this way. The product cannot be produced for less than $120, but John’s preliminary marketing studies indicate that the product could not be sold for more than $25. Which of the following is true?

John cannot get a patent because the transmitter part is not a new invention.

John cannot get a patent because the inability to produce the product at a cost low enough to sell it means that it does not meet the usefulness requirement.

John can get a provisional patent that would provide limited protection until he can redesign it so that it can be made for under $25.

John can obtain protection for his invention even if someone else files a patent application for the same invention so long as John actually invented his first.

Question 6 10 points Save

Donna is on vacation in 2009 in San Francisco. She is a professional photographer and would like to take and sell some photographs of the Golden Gate Bridge. She wants her photographs to be copyrighted, but knows that there are already copyrighted photos of the Golden Gate Bridge taken from almost every angle. In order to gain copyright protection, Donna must:

Take the photo and apply for copyright protection. There will then be a search to be sure her photo is not too similar to previously copyrighted photos.

Take the photo, apply for copyright protection, and wait for the statutory period for anyone to file an objection.

Take the photo, select a title for it, and file for copyright protection.

Take the photo.

Question 7 10 points Save

Wildboards Company introduces a product called a “Rollerboard” for which it is granted a registered trademark. The Rollerboard is a snowboard with a removable row of wheels along the center of the underside. With the wheels attached, the user can attain extremely high speed in hard packed snow conditions. In addition, many users have found that they can use their snowboards on streets with the wheels attached. This new use of snowboards becomes very popular and many competing snowboard makers introduce similar products. The sport becomes known generally as rollerboarding and most people refer to all such wheeled snowboards as rollerboards. The consequence of this is that:

Wildboards cannot prevent competitors from using the term rollerboard to refer to their products.

Competitors must pay royalties to Wildboards for using the term “Rollerboard.”

Wildboards cannot use the name Rollerboard any longer on its boards.

Competitors must put a disclaimer on its boards that they are not the original Rollerboard.

Question 8

A ski company markets a ski of a new design that it calls the “Fast Ski” and wants to register a trademark for it. Which of the following is true?

These are ordinary words for which a trademark cannot be obtained.

If the words have acquired a secondary meaning, trademark protection can be obtained.

So long as the words have become associated with this ski, registration is not necessary in order for the name to receive trademark protection.

If competitors have marketed similar skis such that the term has become generic, this company will no longer be able to use the name for its skis.

Question 9

Henry writes a series of essays that have an environmental focus. One of these essays contains a very detailed description of the workings of a forest ecosystem. A national environmental organization opposed to logging in certain areas has copied this essay and includes it in materials that the group gives to members of the public in hopes of persuading those persons to join the opposition to logging in these areas. Henry has never wanted his work to be forced onto people and objects to his essay being copied and distributed like this. He is afraid persons will think he is part of this organization, and he does not want his essay used this way. Is this within fair use?

Question 10

Henry writes a series of essays that have an environmental focus. One of these essays contains a very detailed description of the workings of a forest ecosystem. A national environmental organization opposed to logging in certain areas has copied this essay and includes it in materials that the group gives to members of the public in hopes of persuading those persons to join the opposition to logging in these areas. Henry has never wanted his work to be forced onto people and objects to his essay being copied and distributed like this. He is afraid persons will think he is part of this organization, and he does not want his essay used this way. Is this within fair use?

Question 1 10 points Save

The federal Food, Drug, and Cosmetic Act is enforced by lawsuits brought by:

The Federal Trade Commission.

The Department of Agriculture.

The Consumer Product Safety Commission.

The Department of Justice.

Question 2 10 points Save

Under the federal rules regulating food and drugs:

Food must be 100 percent pure before it can be sold to consumers.

Food may contain certain impurities, such as insect parts, as long as it is not adulterated.

If a food contains impurities, such as insect parts, these impurities must be disclosed on the food label.

All food must be inspected by the government before it is sold.

Question 3 10 points Save

Which of the following did the FDA not have authority to regulate until 1976?

Organic foods

Medicinal devices

Food additives

Artificial sweeteners

Question 4 10 points Save

The Consumer Product Safety Commission is empowered to do all of the following except:

Adopt rules and regulations to interpret and enforce the Consumer Product Safety Act.

Conduct research on the safety of consumer products.

Issue comparative safety ratings of competing products.

Order a manufacturer to recall, repair, or replace a dangerous product or take other corrective action.

Question 5 10 points Save

Which of the following statements would not be deceptive under Section 5 of the Federal Trade Commission Act?

“This toothpaste cleans 50 percent better than others,” but this claim cannot be proven.

“This car is a great car,” but it is not a great car.

“This car is a 2002 PT Cruiser” when it really is a 2001 model.

“This deodorant keeps you drier than any other brand,” but there is no evidence of this.

Question 6 10 points Save

The Food, Drug, and Cosmetic Act is enforced by:

The Food and Drug Administration.

The Federal Trade Commission.
The Consumer Product Safety Commission.
The Department of Agriculture.

Question 7 10 points Save

The Nutritional Labeling and Education Act (truth-in-labeling law) was passed in:

1900.

1938.

1990.

2008.

Question 8 10 points Save

The usual time period that a consumer will have to rescind a door-to-door sales contract is:

one day.

three days.

seven days.

thirty days.

Question 9 10 points Save

The Theater-at-Home Shop sells home theater systems in all price ranges. The sales people work on commission and earn a 30 percent commission on the most expensive items and as little as 15 percent on the less expensive items. Thus, the sales people prefer selling the more expensive items. The store makes more profit on the more expensive items. The store often holds sales contests with awards going to employees who sell the highest dollar value of merchandise. Is this an unlawful bait-and-switch scheme?

Briefly explain the standard for false and deceptive advertising under Section 5 of the FTC Act.