Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Law
Q:
For five years, baby-food makers Baby-One Corporation and Baby-B-Mine, Inc., both use the phrase "Tastes Good" on their labels. Baby-One files a suit against Baby-B-Mine, claiming trademark infringement. Baby-B-Mine argues that the phrase is not generally associated with any particular firm, pointing to other companies that use the same phrase on their labels. In whose favor is the court most likely to rule, and why?
Q:
When a conflict arises among the documents that involve Express Flights Corporation, the first priority for resolving the conflict is given to
a. resolutions of the board of directors.
b. Express Flights's bylaws.
c. state statues.
d. the U.S. Constitution.
Q:
Sophie and Tiny incorporate their beverage-container business as U-Twist Products, Inc. The first board of directors may be appointed by the firm's
a. employees.
b. incorporators.
c. officers.
d. shareholders.
Q:
Alpha Company develops "Browser Lite," software to speed the display of graphics on Web sites. Browser Lite has the most copyright protection under
a. the Berne Convention.
b. the Paris Convention
c. the TRIPS Agreement.
d. none of the above.
Q:
ABC Software, Inc., develops the software for a new series of computer games. Under the law that applies to trade secrets, this software is protected in
a. its idea only.
b. its expression only.
c. its idea and its expression.
d. none of the above.
Q:
Perfect Tone Phones, Inc., is a corporation. Perfect Tone's implied powers enable it to
a. amend the articles of incorporation.
b. bring a derivative suit.
c. declare dividends.
d. borrow funds, extend credit, and make charitable contributions.
Q:
Lexy and Mort act as the incorporators for NuGame Corporation. After the first board of directors is chosen, subsequent directors are elected by a vote of NuGame's
a. board of directors.
b. employees.
c. officers.
d. shareholders.
Q:
The idea for "On Your Mark," a computer game featuring racing cars, is protected by
a. copyright law.
b. patent law.
c. trademark law.
d. trade secrets law.
Q:
Rhea is a director of Spex Corporation, which makes and sells sunglasses and other eyewear. As a Spex director, Rhea is
a. a trustee because Rhea occupies a position of trust over Spex.
b. a trustee because Rhea holds title to Spex's property for the use and benefit of others.
c. not a trustee because Rhea does not hold title to Spex's property for the use and benefit of others.
d. not a trustee because Rhea is not in a position of trust over Spex.
Q:
O.K. Oil holds itself out to others as being a corporation but makes no attempt to incorporate. In this circumstance, O.K. is most likely
a. a corporation by estoppel.
b. a de facto corporation.
c. a de jure corporation.
d. ultra vires.
Q:
Egan is a director of First Realty Corporation. As a director, Egan can act as an agent to bind First Realty
a. in all circumstances.
b. in no circumstances.
c. to any contract in which Egan does not have a conflict of interest.
d. to any contract that represents a corporate opportunity for First Realty.
Q:
Creative Marketing Corporation (CMC) obtains, and gives its employees, a list of the customers of Dandy Sales, Inc. (DSI), without DSI's permission. Under the law that applies to trade secrets, CMC's use of the list is actionable
a. only if CMC and DSI are competitors.
b. only if DSI's customers are confused.
c. only if CMC and DSI are competitors and DSI's customers are confused.
d. regardless of whether CMC and DSI are competitors or DSI's customers are confused.
Q:
Wings2Go Corporation fails to hold an organizational meeting. In this circumstance, at common law Wings2Go is most likely
a. a corporation by estoppel.
b. a de facto corporation.
c. a de jure corporation.
d. ultra vires.
Q:
A majority shareholder does not owe a fiduciary duty to minority shareholders under any circumstances.
Q:
Kay and Leo copy and exchange MP3 music files over the Internet without anyone's permission. With respect to songs owned by Natural Recording Company, this is
a. copyright infringement.
b. fair use.
c. licensing.
d. protected expression.
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:
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:
Shares issued for more than their fair market value are known as watered stock.
Q:
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
a. Lex copies the entire work.
b. Lex distributes the copies freely to the public.
c. Lex's use has no effect on the market for Mina's work.
d. Lex's use is for a commercial purpose.
Q:
Myron and Norah would like to form Originals, Inc., to do business in the art market. Generally, the articles of incorporation for a corporation do not include
a. the corporate name.
b. the nature and purpose of the corporation.
c. the capital structure of the corporation.
d. the minutes of the first organizational meeting.
Q:
Persons whose names appear in a corporation's stock book are ordinarily entitled to notice of shareholders' meetings and the right to vote.
Q:
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
a. Rita only.
b. USA only.
c. Rita and USA.
d. none of the above.
Q:
Mike copies Nora's book, One for the Money, to a substantial degree and sells it to Peak Editions, Inc., without Nora's permission. Peak publishes it under Mike's name. Nora's copyright is infringed by
a. Mike only.
b. Peak only.
c. Mike and Peak.
d. none of the above.
Q:
Yellowbox, a DVD rental company, would like to change its corporate status to that of an S corporation to avoid inÂcome taxes at the corporate level. To qualify, Yellowbox must
a. be located in the United States.
b. have more than one hundred shareholders.
c. be a non-profit corporation.
d. have more than one class of stock.
Q:
A corporation cannot refuse a shareholder's request to inspect corporate records.
Q:
The graphics used in "Go!," a handheld computer game featuring racing cars, is protected by
a. copyright law.
b. patent law.
c. trademark law.
d. trade secrets law.
Q:
Boutique Corporation would like to change its corporate status to that of an S corporation to avoid inÂcome taxes at the corporate level. To qualify, the shareholders must not be
a. corporations.
b. estates.
c. individuals.
d. partnerships.
Q:
Shareholders have a right to inspect corporate books and records.
Q:
A dividend may be paid from undistributed net corporate profits.
Q:
In 2005, 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
a. for ten years.
b. for twenty years.
c. for the life of the author plus seventy years.
d. forever.
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:
A stock warrant is a distribution of corporate profits or income.
Q:
Smalltown, Alabama is incorporated by the government. Smalltown is
a. a foreign corporation.
b. a public corporation.
c. a private corporation.
d. an alien corporation.
Q:
Able, Inc., designs and makes a fuel injection system that copies Baker Corporation's designs without Baker's permission. This is most likely
a. copyright infringement.
b. patent infringement.
c. service mark infringement.
d. trademark infringement.
Q:
Only certain funds are legally available for paying dividends.
Q:
Wiley incorporates his business as Wiley Wire Corporation in Texas. He and his group of shareholders intend to make a profit from their sales of fencing wire. Wiley Wire Corporation is
a. a nonprofit corporation.
b. not a corporation.
c. an alien corporation.
d. a private corporation.
Q:
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
a. Delta and First.
b. Delta only.
c. First only.
d. neither Delta nor First.
Q:
Gamma Corporation allows Kappa Company to use Gamma's trademark as part of Kappa's domain name. This is
a. a license.
b. an injunction.
c. dilution.
d. litigious.
Q:
A preemptive right is a preference over other shareholders to cast the determining vote on fundamental changes affecting the corporation.
Q:
Painless Dental Equipment Company is incorporated in Colorado. In Wyoming, Painless is
a. a domestic corporation.
b. a foreign corporation.
c. an alien corporation.
d. a non-entity.
Q:
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
a. copyright infringement.
b. patent infringement.
c. trademark dilution.
d. none of the above.
Q:
Ruby Red Corporation is incorporated in South Carolina. In that state, Ruby Red is
a. a domestic corporation.
b. a foreign corporation.
c. an alien corporation.
d. a non-entity.
Q:
Shareholder voting agreements are usually held to be invalid and unenforceable.
Q:
Finn and Glenda want to form and do business as Hobby Crafts Corporation. A corporation is
a. a natural person.
b. a tangible thing.
c. an artificial legal person.
d. a visible radiance.
Q:
Phil invents new Web site design software and applies for a patent. If Phil 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.
Q:
Cumulative voting refers to the accumulation of proposals presented annually for a shareholders' vote.
Q:
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
a. a certification mark.
b. a collective mark.
c. a service mark.
d. trade dress.
Q:
George is the founder of Excellent Exotics Corporation. Wilson is a shareholder and director and Bill is an officer. The daily business operations of Excellent Exotics are overseen by
a. Bill.
b. Wilson.
c. George.
d. George and Wilson.
Q:
For action to be taken during a shareholders' meeting, a forum must be present.
Q:
Fred's Good Eats Cafe uses a distinctive decor, layout, menu, and style of service. This restaurant's image and overall appearance is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. trade dress.
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 article of corporation cannot exclude or limit shareholders' voting rights.
Q:
In 2005, Digital Equipment Corporation registers its trademark as provided by federal law. This registration provides protection
a. for ten years.
b. for twenty years.
c. for the life of the corporation plus seventy years.
d. forever.
Q:
Erin is a shareholder in African Adventures. As a shareholder, Erin
a. owns shares of stock in African Adventures.
b. is the founder of African Adventures.
c. has no say in the election of African Adventure's board of directors.
d. is liable for all the debts of African Adventures.
Q:
To vote their shares, shareholders must attend a meeting and vote in person.
Q:
On National Consumer Company's (NCC) products, NCC currently uses a trademark that neither NCC nor anyone else has registered with the government. Under federal trademark law, NCC
a. can register the mark for protection.
b. cannot register a mark that has been used in commerce.
c. has committed trademark infringement.
d. must postpone registration until the mark is out of use for six months.
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:
Shareholders' meetings must occur at least annually.
Q:
Corporate officers and directors owe no duty to individual shareholders.
Q:
Pepsi Cola Company sought to enjoin Pepsee Company of America and other beverage companies from, among other things, using the word Pepsee for their products. Pepsee contended that the Pepsi Cola trademark was a fraudulent representation in that, by use of the Pepsi name, the company represented that their beverage contained an extra amount of energy, or "pep", from the addition of various illegal chemicals. This claim is substantiated by evidence that such chemicals were used for the first three years of production, but not in the dozens of years of sales since, and Pepsi advertised to the public that no such chemicals were being used. Based on the court's ruling in Case 8.1, The Coca-Cola Co. v. The Koke Co. of America, the court in this case would most likely rule in favor of
a. Pepsi, because it had a valid trademark.
b. Pepsee, because of Pepsi's fraudulent misrepresentation.
c. Pepsi, because its product was first on the market.
d. Pepsee, because the court is interested in promoting a free market economy.
Q:
Skyla and Terry want to form and do business as Unique Boutique Corporation. Its existence depends generally on
a. city or county corporate codes.
b. the Entrepreneur's Corporate Handbook.
c. the federal Administrative Procedure Act.
d. state law.
Q:
Shareholders have no responsibility for the day-to-day management of a corporation.
Q:
A court can not dissolve a corporation for mismanagement.
Q:
A nation that is a party to the TRIPS agreement may discriminate against the foreign owners of intellectual property rights in favor of its own citizens.
Q:
When dissolution takes place by voluntary action, the shareholders are responsible for winding up the affairs of the corporation.
Q:
The Berne Convention provides an American who writes a book with copyright protection in every country in the world.
Q:
Shareholders own a corporation.
Q:
A director may not sit on the board of more than one corporation at a time.
Q:
When a corporation is dissolved voluntarily, the corporation must file articles of dissolution with the state.
Q:
To be actionable, a theft of trade secrets must involve a contract violation.
Q:
Pricing information can be a trade secret.
Q:
Corporate directors and officers are insurers of business success.
Q:
Only a board of directors can initiate the dissolution of a corporation.
Q:
A sale of all of a corporation's assets requires the approval of its shareholders.
Q:
A list of customers can be a trade secret.
Q:
Officers are required to exercise a reasonable amount of supervision over the corporate directors.
Q:
Loading a file into a computer's random access memory constitutes the making of a "copy" for purposes of copyright law.
Q:
When a sale of assets amounts to what in fact is a consolidation, the acÂquiring corporation inherits the selling corporation's liabilities.
Q:
A corporate officer is not expected to be informed on corporate matters.
Q:
The least important factor in determining whether a use of a copyrighted work is a "fair use" is the effect of the use on the market for the copyrighted work.