Q&A Hero

Q: Jen files a suit against Kopper Kettle Company. While the suit is pending, Kopper Kettle merges with Luminous Pans, Inc., with Luminous absorbing Kopper Kettle. Now, liability in the suit, if any, rests with a. Jen. b. Kopper Kettle. c. Luminous. d. no one.

Q: Standard Corporation can not claim a trademark in the phrase "Quality Is Standard" if the phrase a. has a secondary meaning. b. is descriptive. c. is generic. d. is memorable.

Q: Original, Inc., sells its product under the name "Phido." Quik Corporation begins to market a similar product under the name "Fido." This is a. a theft of trade secrets. b. copyright infringement. c. patent infringement. d. trademark infringement.

Q: Niki owns O.K. Oil Corporation. Niki uses O.K.'s funds to pay her personal expenses, creates Pure Fuel Corporation to engage in the same business as O.K., transfers O.K.'s assets to Pure Fuel, and petitions O.K. into bankruptcy. This most likely warrants a. a bonus to Niki for financial maneuvers. b. a discharge for O.K. in bankruptcy. c. a piercing of O.K.'s corporate veil. d. a review of Pure Fuel's articles of incorporation.

Q: A business trust resembles a corporation.

Q: Stable Foundation Construction Corporation's articles list an incorrect address for its incorporator. Under this circumstance, Stable is most likely a. a corporation by estoppel. b. a de facto corporation. c. a de jure corporation. d. ultra vires.

Q: In Case 8.1, 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 a. copyright. b. patent. c. trademark. d. trade secret.

Q: A joint stock company is a hybrid of a partnership and a corporation.

Q: A group of individuals getting together to finance a particular project may form a syndicate.

Q: Eager Beaver Corporation fails to adopt bylaws. Under this circumstance, Eager Beaver is most likely a. a corporation by estoppel. b. a de facto corporation. c. a de jure corporation. d. ultra vires.

Q: Jill develops a new espresso machine, which she names "Quik Shot." She also writes the operating manual to be included with each final product. Jill could obtain trademark protection for a. the espresso machine only. b. the name only. c. the operating manual only. d. the espresso machine, the name, and the operating manual.

Q: Under the TRIPS agreement, computer programs have copyright protection.

Q: A syndicate may exist in the form of a partnership but not a corporation.

Q: Superior Home Products, Inc., is a corporation. Superior's implied powers enable it to a. amend the articles of incorporation. b. bring a derivative suit. c. declare dividends. d. perform all acts reasonably appropriate and necessary to accom­plish its corporate purposes.

Q: Under the TRIPS agreement, each member country must include in its domestic laws broad intellectual property rights.

Q: Joint venturers have the authority to enter into contracts for the business that will bind the joint venture.

Q: Stan incorporates his scientific products business as Tech Supply, Inc. Unless the articles of incorporation state otherwise, Tech Supply most likely has a. a finite, yet-to-be-determined existence. b. a one-year, nonrenewable existence. c. a one-year, renewable existence. d. perpetual existence.

Q: Like the bylaws of other corporations, the bylaws of Retail Sales, Inc., a. establish the operating name of the corporation. b. establish the value and classes of corporate stock. c. were adopted at its first organizational meeting. d. were submitted for approval to the public official in charge.

Q: Most courts apply the same principles to joint ventures as they apply to corporations.

Q: Theft of confidential data by industrial espionage is a theft of trade secrets.

Q: Caffeine Café, Inc., files its articles of incorporation with the appropriate government agency. Least likely to appear in the articles is the name of a. each of the corporation's incorporators. b. each of the corporation's shareholders. c. the corporation. d. the corporation's initial registered agent.

Q: A joint venturer can be held personally liable for the venture's debts.

Q: A joint venture resembles a partnership but is taxed like a corporation.

Q: A formula for a chemical compound is not a trade secret.

Q: To qualify as a professional corporation, Medical Clinic, P.C., a. must be a corporation formed by professionals. b. must grant all shareholders voting rights. c. must have at least thirty-five shareholders. d. all of the choices.

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

Q: When a limited liability company is dissolved, any member who did not wrongfully dissociate may participate in the winding up process.

Q: The abbreviation "P.A." in the name "Painless Dental, P.A." means that this organization is a. a private association. b. a professional association. c. a public association. d. a publicly administered corporation.

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

Q: When a member dissociates form a limited liability company, the member's duty of loyalty continues.

Q: Boutique Corporation would like to change its corporate status to avoid in­come taxes at the corporate level. To qualify, the shareholders must not be a. corporations. b. estates. c. individuals. d. partnerships.

Q: In determining whether copyright protection should be granted, the central issue is the way in which a particular idea is expressed.

Q: Generally, a dissociated member of a limited liability company (LLC) has the right to have his or her interest in the LLC bought out by the other members.

Q: Ruby Red Corporation has six shareholders, four of whom are members of the same family. All of Ruby's shareholders agree in writing to operate without shareholders' meetings. Under the Revised Model Business Corporation Act, this most likely warrants a. no penalties or sanctions. b. the imposition of a fine on Ruby. c. the imprisonment of Ruby's shareholders. d. the piercing of Ruby's corporate veil.

Q: A member of a limited liability company (LLC) has the power and the right to dissociate from the LLC at any time.

Q: It is possible to copyright an idea.

Q: Convenience Mart, Inc., is a close corporation. Convenience Mart is a. eligible to make public offerings of securities. b. exempt from filing a certificate of incorporation. c. generally allowed to restrict the transfer of its stock. d. taxed in the same manner as a partnership.

Q: Some states provide that in the absence of an agreement to the contrary each member of a limited liability company has one vote.

Q: Patent infringement occurs only if all features or parts of an invention are copied.

Q: A firm named Scientific Discovery Corporation (SDC) makes an attempt to incorporate for a purpose other than making a profit. SDC is a. a foreign corporation. b. an alien corporation. c. a nonprofit corporation. d. not a corporation.

Q: Most limited liability company statutes have no provisions regarding member' meetings.

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

Q: Raw Resources Corporation authorizes Stefan, its employee, to oversee its mining operation. In the course of this employment, Stefan disposes of the mine's waste illegally. Liability for this crime most likely rests with a. neither Raw Resources nor Stefan. b. Raw Resources and Stefan. c. Raw Resources but not Stefan. d. Stefan but not Raw Resources.

Q: A limited liability company must be managed by its members.

Q: A trade name cannot be registered with the federal government unless it is also a trademark.

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

Q: A limited liability company must be managed by non-member managers.

Q: Finn and Glenda want to form and do business as Hobby Crafts Corporation. A corporation is a legal entity created and recognized by a. a central federal administrative agency. b. a city or county clerk's office. c. an artificial legal person. d. state law.

Q: Inez and Jason are the shareholders and directors of Kleen Kustodial Corporation. Lily and Moe are Kleen's officers. As in other corporations, the responsibility for the overall management of Kleen rests with a. the board of directors. b. the officers. c. the owners. d. the shareholders.

Q: The law does not protect the use of a symbol to identify a product.

Q: In many states, an operating agreement is not required for a limited liability company to exist.

Q: Pola and Quincey want to form and do business as River Tours Corporation. A corporation can consist of a. no natural persons. b. one natural person but not more. c. one or more natural persons. d. only more than one natural person.

Q: If there is no limited liability company (LLC) agreement covering a topic under dispute, the state LLC statute will govern the outcome.

Q: Trade dress has the same legal protection as trademarks.

Q: Skyla and Terry want to form and do business as Unique Boutique Corporation. The state statute governing the formation and operation of their corporation is most likely guided by a. city or county corporate codes. b. the Entrepreneur's Corporate Handbook. c. the federal Administrative Procedure Act. d. the Revised Model Business Corporation Act.

Q: The alter-ego doctrine can be applied to a limited liability company.

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

Q: Winding up a corporation's affairs can only be performed under court supervision.

Q: A limited liability company is a citizen of every state in which it does business.

Q: A court can dissolve a corporation for mismanagement.

Q: An arbitrary use of ordinary words may be trademarked.

Q: A limited liability company can be taxed as a corporation.

Q: A limited liability company can be taxed as a partnership.

Q: Only a board of directors can initiate the dissolution of a corporation.

Q: A "distinctive" or "famous" trademark is protected from unauthorized use even if the user is not in direct competition with the owner of the mark.

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

Q: A sale of all of a corporation's assets requires the approval of the state.

Q: An applicant can register a trademark on the basis of an intention to use the mark in commerce.

Q: A limited liability company is not a citizen of any state.

Q: In Case 8.1, 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."

Q: A limited liability company (LLC) formed in one state but doing business in another state is referred to in the second state as a foreign LLC.

Q: Foreign investors are not allowed to become limited liability company members.

Q: When a sale of assets amounts to what in effect is a consolidation, the ac­quiring corporation does not inherit the selling corporation's liabilities.

Q: Jean owns five acres of land in an area of single-family homes on mostly one-acre plots. Jean's property contains her house and three outbuildings. Among the animals housed in the outbuildings are Kennel, a dog, and Louis, a tiger. Mary, a neighbor, is jogging past Jean's property. Under what circumstance is Jean strictly liable if Kennel bites Mary? Under what circumstance is Jean strictly liable if Louis bites Mary?

Q: Shareholder approval is required when a corporation buys all of the as­sets of an­other company.

Q: Dan, a driver for EZ Delivery Company, leaves the truck's motor running in neutral and carelessly forgets to set the parking brake while he makes a delivery. The truck rolls and crashes into a nearby gas station pump, igniting a fire that spreads quickly to a construction site a block away. A burned wall collapses onto a crane, which falls on, and injures, a bystander, Flo. What must Flo show to recover damages from Dan?

Q: A limited liability company can sue or be sued, enter into contracts, and hold title to property.

Q: The members of a limited liability company enjoy limited liability.

Q: Appraisal rights are often the only recourse for shareholders who object to a parent-subsidiary merger.

Q: Appraisal rights are normally available in sales of sub­stan­tially all corporate assets not in the ordinary course of business.