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Q:
Joe pays Ann to mow his lawn and Ann mows Danna's lawn by mistake. Danna peeps out her window and sees Ann mowing, yet says nothing to Ann about her mistake since Danna needs to have her lawn mowed. When Ann approaches Danna for payment, Danna refuses, arguing that she had never asked Ann to mow her lawn. Under these circumstances, Ann can recover payment from Danna under:
A. void contract.
B. quasi contract.
C. executory contract.
D. express contract.
Q:
The doctrine of promissory estoppel:
A. makes the contracts unenforceable.
B. does not make promises enforceable.
C. protects bargains, not reliance.
D. protects reliance, not bargains.
Q:
An executory contract is a contract:
A. which has been fully performed by all parties.
B. where executive privileges are implied.
C. which has not yet been fully performed by all parties.
D. where one party performs on the basis of a promise made by the other.
Q:
A promise exchanged for an act is an example of a:
A. a bilateral contract.
B. a unilateral contract.
C. an implied contract.
D. a quasi-contract.
Q:
John tells Sally he will sell her his car for $1,000. Sally agrees to buy the car on John's terms. The contract between John and Sally is:
A. unilateral and executory.
B. bilateral and voidable.
C. bilateral and executory.
D. unilateral and implied.
Q:
When two parties have directly, but orally, stated all of the terms of a contract at the time it was formed, they have:
A. executed the contract.
B. made an express contract.
C. made an implied contract.
D. not made an enforceable contract.
Q:
Which of the following is intended to avoid unjust enrichment?
A. A bilateral contract
B. A quasi contract
C. A void contract
D. An express contract
Q:
Ted makes a deal with Ella to sell her his farm. They shake hands to "seal the deal," but do not put the agreement in writing. The contract is:
A. voidable but enforceable.
B. void.
C. valid.
D. unenforceable.
Q:
Ben makes an agreement with Bob for Bob to steal Professor Smith's laptop computer. The agreement between Ben and Bob is:
A. voidable.
B. void.
C. valid.
D. unenforceable.
Q:
An oral contract which was required by contract law to be in writing is:
A. void.
B. voidable.
C. unenforceable.
D. valid.
Q:
Elroy is fifteen years old and makes an agreement with Dave to buy Dave's mp3 player. The agreement:
A. is executed.
B. cannot be cancelled.
C. is unilateral.
D. is voidable.
Q:
A promise exchanged for a promise is an example of:
A. a bilateral contract.
B. a unilateral contract.
C. an implied contract.
D. promissory estoppel.
Q:
If there is no UCC rule governing a particular contract problem:
A. freedom of contract is obtained.
B. unconscionable contract is assumed.
C. unjust enrichment is assumed.
D. the common law is applicable.
Q:
Which of the following is correct regarding the definition of "Merchant" by UCC?
A. It sometimes imposes a higher standard of behavior on merchants than non-merchants.
B. It always imposes the same standards on merchants and non-merchants.
C. It regards everyone covered by the UCC as a merchant.
D. It deals only with nonprofessional sellers.
Q:
Which of the following is correct regarding the CISG?
A. Its fundamental goal is to unify and codify the law on sale of goods among contracting parties from different states in the United States.
B. It provides rules governing the formation of international contracts and regulates the transfer of goods under those contracts.
C. It focuses on which terms of the offer and acceptance are the same.
D. It applies to commercial and consumer transactions.
Q:
The UCC differs from the United Nations Convention on Contracts for the International Sale of Goods (CISG) in that:
A. the UCC does not require contracts to be in writing, CISG requires contracts for the sale of goods in excess of $500 to be in writing.
B. the CISG applies to the sale of consumer transactions while the UCC governs both consumer and commercial transactions.
C. the UCC holds merchants to higher standards in some circumstances, while the CISG does not make a distinction between merchants and non-merchants.
D. the CISG applies to both consumer and commercial transactions, while the UCC applies only to commercial sales of goods.
Q:
As used in the UCC, the concept "reasonable":
A. is a practical standard used to gauge what people really do in the marketplace.
B. is a theoretical concept based on the "reasonable person standard" of tort law.
C. refers to the capacity to contract.
D. refers to what a reasonable person would do in the marketplace.
Q:
Christy downloaded a music software program from the Internet. Under the UCC, the software is:
A. a good.
B. a service.
C. a good faith warranty.
D. a mixture of goods and services.
Q:
Which of the following statements is true about the UCC?
A. One of the purposes of UCC was to promote fair dealing and higher standards of behavior in the marketplace.
B. The most obvious purpose of UCC was to establish a uniform law to govern commercial transactions that often takes place within the state.
C. In accordance with the intentions of the drafters of UCC, complete uniformity has been achieved.
D. The Code is divided into 10 articles that deal with many of the problems that might ordinarily arise in a commercial transaction.
Q:
Article 2 of the UCC applies to all contracts for the:
A. liquidation of assets.
B. sale of goods.
C. sale of securities.
D. transfer of money between banks.
Q:
The UCC defines "goods" as:
A. intangible personal property.
B. tangible personal property.
C. abstract property.
D. tangible public property.
Q:
In a contract involving elements of both goods and services, a court will determine whether Article 2 of the UCC applies by:
A. asking which element predominates.
B. balancing the need to apply a uniform standard with the interest of justice.
C. asking if the contract is barred by public policy.
D. using the criteria of reasonableness.
Q:
Compared with common law, the UCC:
A. is more rigid.
B. is more likely to find that parties have a contract.
C. is more concerned with technical rules.
D. applies theoretical rules to deal with what people do in the marketplace today.
Q:
Which of the following is a change that took place in the legal system that led to the development of contract law in the process?
A. Courts began to shift their emphasis from protecting consumers and workers to protecting business and promoting industrialization.
B. Courts today are not willing to consider defenses based on inequality of bargaining power between the parties.
C. Courts tend to view with great suspicion, attempts by manufacturers to limit their responsibility for their products by contract.
D. Legislation does not control any contractual relationships. This has been left to private bargaining.
Q:
In a unilateral contract, only one of the parties makes a promise. The other party performs an act in exchange for that promise.
Q:
A contract is implied when the parties directly state its terms at the time the contract is formed.
Q:
The "Restatement (Second) of Contracts" carries the force of law.
Q:
Unlike contractual liability under the traditional bargain theory, liability under the doctrine of promissory estoppel is based on reliance.
Q:
Which of the following is true about a contract?
A. Any offer made is a contract, though there is no acceptance of the offer.
B. It need not necessarily be entered into by parties having capacity to contract.
C. It must be voluntarily entered into and promise to perform a legal act.
D. It must always be supported by consideration.
Q:
(p. 172, 173) Which of the following is true of the laissez faire economic theories?
A. People in business were unable to limit or shift many of their economic risks by placing clauses in their contracts.
B. The courts were unwilling to interfere with people's private agreements or to do anything that might interfere with the country's growing industrialization.
C. These theories were never considered a part of the public policy in the 19th century.
D. People in business had to face a lot of restrictions while planning the kind of economy that increasing industrialization required.
Q:
Jim and Slater want to buy a car. As they don't have sufficient money, they plan to steal their neighbor's car and sell it. This is a valid contract.
Q:
A contract that has been fully performed is an executory contract.
Q:
CISG applies to any party, be it a merchant or a nonmerchant.
Q:
A voidable contract is one that may be canceled by only one of the parties.
Q:
A voidable contract is necessarily unenforceable.
Q:
The Industrial Revolution that modernized America changed many of the basic assumptions underlying contract law.
Q:
Every state has adopted the Uniform Commercial Code.
Q:
The drafters of the U.C.C intended for the code to establish complete uniformity.
Q:
The Uniform Commercial Code has achieved complete uniformity of the laws governing commercial transactions.
Q:
The UCC is more flexible than the common law.
Q:
Briefly explain the extraterritorial reach of the U.S patent law.
Q:
How can a plaintiff recover for trademark infringement?
Q:
What are technology transfer agreements?
Q:
Briefly explain the three distinct time frames when secrecy provisions under the confidentiality clause of licensing agreements may be utilized.
Q:
Freedom of contract is a notion that has emerged only in the last twenty years.
Q:
Which of the following statements is true for the confidentiality clause?
A. It restricts the licensor's right to disclose trade secrets after the licensing agreement has ended.
B. During a licensing agreement, it permits the licensor to limit the number of people with whom the licensee may share the technology.
C. It restricts the licensee's right to disclose the information only when the licensed technology is not a trade secret.
D. Prior to licensing, it does not allow potential licensees to inspect the technology the licensor is providing.
Q:
As a part of their new business expansion strategies, an Italian company, manufacturing car accessories, licensed a local firm in Kenya for production of car sun shades. After running a successful business for one year, the Kenyan firm manufactured its own car shades with local resources and started selling them at lower rates. This was a violation of the _____ clause in licensing agreements which prohibits the licensee from providing goods or services that are competitive with those supplied by the licensor.
A. granting
B. requirements
C. exclusive dealing
D. technical service
Q:
A licensor may retain certain markets for himself while allowing the licensee to exploit the licensed technology everywhere else in the world. This provision is found in the:
A. exclusive dealing clause.
B. grant-back clause.
C. territoriality principle.
D. territorial restriction.
Q:
Which of the following is a drawback of technology licensing?
A. The licensee can sever the licensing relationship and become a competitor after gaining access to the licensor's technology.
B. The licensee runs the constant risk that the licensor will provide inferior service.
C. Licensing maximizes the physical and financial presence of a business overseas thereby exposing it to risks.
D. Licensing escalates the risks of suffering devastating losses in the event of an expropriation.
Q:
The _____ is a fundamental provision found in most licensing contracts which indicates the precise scope of the license.
A. technical service clause
B. confidentiality clause
C. granting clause
D. exclusive dealing clause
Q:
A trade secret is also called ____.
A. performance standard
C. compilation of information
propriety information
Trade secret, generally, is developed by a firm over the course of its business activities. Sometimes called know-how or propriety information, this type of intellectual property includes secret formulas, devices, processes, techniques, and compilations of information (e.g., customer lists).
Q:
Which of the following statements is true about trade secrets?
A. A trade secret usually receives legal protection even if its owner did not take reasonable precautions to keep it a secret.
B. A trade secret generally does not include processes, techniques, and compilations of information.
C. A business may attempt to maintain a trade secret when it has a process or product that is not novel enough to receive patent protection.
D. A business may attempt to maintain the trade secret if the monopoly period for patents is relatively long.
Q:
An individual may freely use the trade secret of another if:
A. it was discovered through reverse engineering.
B. it was acquired from someone who breached a duty of confidentiality regarding the secret.
C. it was obtained by improper means.
D. it was acquired by breaching the duty of confidentiality regarding the secret.
Q:
Technology transfer agreements:
A. protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.
B. permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment.
C. prevent an intellectual property owner from granting to another the right to use protected technology in return for some form of compensation.
D. assert that priority of trademark rights in the United States depends solely upon the priority of use in the States, and not anywhere else in the world.
Q:
Which of the following is an advantage of licensing?
A. It permits quicker foreign market penetration than direct investment.
B. It maximizes the physical and financial presence of a business overseas.
C. It allows the licensee to directly benefit by receiving royalty payments.
D. It allows the first person to register a trademark to become its legal owner.
Q:
The person who owns the intellectual property is known as the ____.
A. warrantor
B. licensee
C. guarantor
D. licensor
Q:
The _____ theory of recovery has been used effectively against several suppliers of peer-to-peer file sharing software that has been used to download CDs and DVDs from the Internet.
Q:
Trademark dilution laws:
A. protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.
B. are intended at protecting consumers rather than focusing on protecting the investment of trademark owners.
C. permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment.
D. require the licensee to transfer any inventions it derives from the licensed technology to the licensor.
Q:
The unauthorized reproduction of creative works is prohibited by a(n):
A. inventor's certificate.
Q:
A. is 110 years from the first publication or 140 years from creation, whichever comes first.
B. lasts for the life of the author plus 70 years.
C. is 95 years from the first publication or 120 years from creation, whichever comes first.
D. lasts for the life of the author plus 120 years
Q:
A. does not apply if the use enhances the value or marketability of the original work.
C. applies only to creative works rather than informational works.
Q:
When the trademark is a descriptive term:
A. courts routinely treat the term as distinctive to legal merit.
B. protection exists only if a claimant proves that the term conveys to consumers a secondary meaning of association with the claimant.
C. courts are unwilling to afford the term trademark protection.
D. it qualifies for trademark protection automatically and functions as the common descriptive name of a product class.
Q:
Which of the following statements is true of the registration system for trademarks?
A. In the United States, a trademark is eligible for registration in the absence of prior commercial use.
B. U.S. trademarks are generally registered for 20-year terms and the holder may renew the registration only twice.
C. The registration of a trademark must contain a clear description of what is being protected and must be available to the public.
D. Registration is not mandatory for service marks and geographical indications to be protected.
Q:
The principle of first in time equals first in right:
A. asserts that it is enough to have invented the mark first.
B. is a fundamental principle of service mark law.
C. asserts that it is enough to have used the mark earlier in any country.
D. is bound by the territoriality principle.
Q:
One of the conditions that a plaintiff must show in order to recover for trademark infringement is that:
A. the defendant used the mark only in exports.
B. the defendant's use of the mark was in connection with the advertising of goods.
C. the defendant's use of the trademarks dilutes their distinctive quality.
D. the defendant began using the trademarks after they became famous.
Q:
Which of the following statements is true of the Trade Related Aspects of Intellectual Property Agreement?
A. It permits nations to issue compulsory licenses when a patent holder does not make patented goods available to the public.
B. It prevents least developed nations from using compulsory licenses to guarantee the production of low-cost drugs.
C. It prevents developing nations from installing safeguards as protection against low-cost drugs being resold in the developed world.
D. It permits the developed nations to issue inventor's certificates which would entitle its holder to exclusive use of the creation.
Q:
Which of the following statements is true about patent infringement in the U.S?
A. The court holds only the infringer accountable for the unlawful activities. Accomplices are not considered liable under the U.S infringement law.
B. There is no affect on the importation of foreign goods that infringe U.S. patent rights.
C. Infringement does not occur when a product patented in the U.S is made and sold in another country.
D. The court grants an automatic injunction in cases of infringement.
Q:
A distinctive word, name, symbol, or device used by a business to distinguish its goods from those of its competitors is called a ____
A. service name.
B. service mark.
C. trade name.
D. trademark.
Q:
Courts are unwilling to provide trademark protection to a term if it is:
A. arbitrary.
B. generic.
C. descriptive.
D. suggestive.
Q:
Aspirin has lost its trademark protection because the name has become so widely used that it has acquired a ____ meaning.
A. generic
B. descriptive
C. arbitrary
D. comprehensive
Q:
An American university professor derives a new formula which explains a fundamental principle of nature. In the United States, this formula:
A. can be patented.
B. cannot be patented.
C. can be patented if it is novel.
D. cannot be patented because it is not useful.
Q:
The Unites States awards patent privileges based on a ____ standard.
A. first to contemplate
B. first to use
C. first to file
D. first to invent
Q:
The World Trade Organization (WTO) addresses intellectual property rights under the:
A. TRIPS agreement.
B. TRIMS agreement.
C. FCRA agreement.
D. ERISA agreement.
Q:
A patent:
A. grants its owner the exclusive right to make, use, or sell an invention or process for an indefinite period.
B. deprives competitors of the opportunity to use the invention without the patent holder's consent.
C. creates a permanent monopoly thereby discouraging the creation and utilization of new products and technologies.
D. includes articles or processes falling under the category of physical phenomena or abstract ideas.
Q:
The risk of a licensee producing inferior goods or inferior service is drastically reduced if the licensor closely monitors his/her activities.
Q:
A grant-back provision requires the licensee to transfer any inventions it derives from the licensed technology to the licensor.
Q:
The exclusive dealing clause permits the licensee from providing goods or services that are competitive with those supplied by the licensor.
Q:
Generally, compensation clauses specify the currency in which royalty payments are to be made.
Q:
Patents, trademarks, copy rights, and trade secrets are basic types of:
A. intellectual property.
B. community property.
C. business property.
D. patented property.
Q:
An individual can freely use the trade secrets of another if he discovers them through means such as reverse engineering.