Deck 9: Legal Challenges for Entrepreneurial Ventures

Question 1

Copyrights have to be registered with the Copyright Office.

Answer 1

False

Question 2

chapter 13 bankruptcy involves a reorganization of the enterprise.

Answer 2

False

Question 3

Attorney-hopping is the best way to keep legal fees to a minimum.

Answer 3

False

Question 4

Three primary legal forms of organization are the sole proprietorship, the partnership, and the corporation.

Question 5

The patent process is neither complex nor does it require careful planning.

Question 6

Design patents last for 20 years.

Question 7

Once issued, the trademark is registered with the Patent and Trademark Office.

Question 8

Works created and copyrighted after January 1, 1978, are protected for the life of the author plus 70 years.

Question 9

It often is possible to obtain more capital and a better range of skills in a sole proprietorship than in a partnership.

Question 10

In bankruptcy terms,chapter 7 is often called liquidation.

Question 11

Because corporate law makes it difficult for businesses to consider employee, community, and environmental interests in their decision making, the B corporation has been introduced.

Question 12

At present, the courts have held that the unauthorized use of another's mark in a domain name may constitute trademark infringement.

Question 13

Anyone who violates an author's exclusive rights under a copyright is liable for infringement.

Question 14

The Bankruptcy Act was set up in order to provide assistance to both debtors and creditors.

Question 15

Any legal proceeding can cost an entrepreneur a lot of money in legal fees.

Question 16

An example of a trademark is a motto.

Question 17

The two parts of a patent application are specification and claims.

Question 18

One of the principal advantages of a corporation is that the stockholder's liability (the most money a person can lose) is limited to an individual's investment.

Question 19

A copyright provides exclusive rights to creative individuals for the protection of their artistic productions.

Question 20

chapter 7,chapter 9, andchapter 11 are the most common forms of bankruptcy.

Question 21

In order to obtain a patent, an application should be filed with the

A)Office of Government Publications.
B)Patent and Trademark Office of the Department of Commerce.
C)Government Accounting Office.
D)United States Small Business Association.

Question 22

If infringement can be proven in court, a monetary award may be given to the trademark holder.

Question 23

The registration of a trademark lasts for 40 years, with continuous renewal every 10 years.

Question 24

Trademark registration and search is not costly.

Question 25

Because of the fair use doctrine, it is sometimes difficult to establish infringement.

Question 26

A patent is an intellectual property right.

Question 27

An infringement budget deals with

A)legal battles.
B)government bribes.
C)claims.
D)advertising expenditures.

Question 28

Legal protection is granted to computer programs in which of the following forms?

A)patent
B)trademark
C)copyright
D)service mark

Question 29

Patents eventually expire.

Question 30

Business owners normally preferchapter 7 bankruptcy over any other form of bankruptcy.

Question 31

Specific forms of partnership include _____ and _____.

A)limited partnerships; limited liability companies
B)limited partnerships; limited liability partnerships
C)limited partnerships; S partnerships
D)S partnerships; limited liability companies

Question 32

If a trademark has not been used for two consecutive years, it could be invalidated under

A)abandonment.
B)cancellation proceedings.
C)a cleaning-out procedure.
D)generic meaning.

Question 33

A trademark is a distinctive name, mark, or symbol that is identified with a company's product.

Question 34

The object of a patent is to provide the holder with a temporary monopoly on his or her innovation.

Question 35

Which of the following falls underchapter 7 bankruptcy?

A)The debtor surrenders most property to a court trustee.
B)The debtor fails to file income taxes.
C)The debtor is relieved of obligations.
D)The debtor is arrested.

Question 36

Which of the following individuals defined the corporation as "an artificial being, invisible, intangible, and existing only in contemplation of the law"?

A)Karl Marx
B)Justice John Marshall
C)Henry Ford
D)Thomas Jefferson

Question 37

Which of the following is an indicator that an entrepreneur's business is failing?

A)Other firms are selling advanced products.
B)Retailers are overstocked.
C)Obligations are greater than assets.
D)The R&D budget is proportionally less than that of the competition.

Question 38

Which of the following is not one of the major sections of the Bankruptcy Act?

A)straight bankruptcy
B)reorganization
C)adjustments of debts
D)liquidation

Question 39

Entrepreneurs should not be concerned with establishing a clear fee structure with an attorney before any legal matters are handled.

Question 40

An S corporation takes its name from

A)Subchapter S.
B)state law.
C)S Lab.
D)Uniform Commercial Code.

Question 41

Which of the following can provide a structure that facilitates investments in socially beneficial, for-profit ventures?

A)S corporation
B)low-profit, limited liability company (L3C)
C)limited partnership
D)limited liability partnership

Question 42

Copyrights may be expressed in all of the following except

A)books.
B)computer programs.
C)motion pictures.
D)ideas.

Question 43

When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of

A)abandonment.
B)cancellation proceedings.
C)a cleaning-out procedure.
D)generic meaning.

Question 44

A patent gives the holder a temporary

A)profit.
B)oligopoly.
C)monopoly.
D)specification.

Question 45

Which of the following is a suggestion to minimize legal costs?

A)Visit the lawyer during normal hours of operation.
B)Have the lawyer custom design forms specifically for you.
C)Always handle matters personally.
D)Try to avoid hiring a lawyer if and until an emergency requires it.

Question 46

Achapter 11 proceeding allows the business to operate as a(n) _____, which means that the court appoints a trustee to oversee the management of the business.

A)nonexempt property
B)liquidation
C)unsecured debtor
D)debtor-in-possession

Question 47

The two parts to a patent application are claims and

A)percentage.
B)specification.
C)value.
D)integration.

Question 48

Which of the following explains how death affects the duration of a corporation?

A)A corporation usually terminates on the death of a founding shareholder.
B)A corporation is unaffected by the death of a shareholder.
C)A corporation is affected by the death of a shareholder.
D)A corporation is usually unaffected by the death of a shareholder unless a general partner dies.

Question 49

A patent infringer can be liable for all _____ resulting from the infringement as well as for legal fees.

A)profits
B)damages
C)claims
D)costs

Question 50

A B corporation's legal structure expands corporate accountability to encompass all of the following except

A)higher legal accountability standards.
B)comprehensive and transparent Internet standards.
C)comprehensive and transparent social performance standards.
D)society's greater good.

Question 51

A trademark is a distinctive _____ that is identified with a company's product.

A)name
B)billboard
C)TV ad
D)storefront sign

Question 52

Which of the following statements regarding sole proprietorships is true?

A)A sole proprietorship is owned and operated by one person.
B)Proprietorships have limited liability for the operation.
C)Proprietorships are taxed as businesses.
D)Ordinarily, the amount of capital available to proprietorships is equal to that available to other types of business organizations.

Question 53

For the author of creative material to obtain a copyright, the material must be in _____ form.

A)nontangible
B)technical
C)tangible
D)commercial

Question 54

The part of a patent application that identifies the features that are protected is known as the

A)particular.
B)claim.
C)identification.
D)essence.

Question 55

The emerging body of law governing cyberspace is often referred to as

A)netlaw.
B)cyberlaw.
C)interlaw.
D)a legal web.

Question 56

To establish a sole proprietorship, a person needs to

A)obtain whatever local and state licenses are necessary.
B)legalize financial documents.
C)carefully assume their shares in the profits.
D)obtain owner stock.

Question 57

Copyrights can be placed on all of the following except

A)ideas.
B)lectures.
C)books.
D)music.

Question 58

Anyone who violates an author's exclusive rights under a copyright is liable for

A)a prison term.
B)actual damages only.
C)actual damages plus any profits from use.
D)any profits from use but not damages.

Question 59

What percentage of issued patents is considered commercially valuable?

A)a very small percentage
B)a very large percentage
C)about a third
D)about half

Question 60

Works created after January 1, 1978, have a copyright for the life of the author plus

A)70 years.
B)50 years.
C)14 years.
D)10 months.

Question 61

A typical symptom of impending bankruptcy is when

A)new competition exits the market.
B)other firms seem to be selling products that are a generation ahead.
C)retailers always seem to be understocked.
D)the entrepreneur seeks to exit the market.

Question 62

The determination of fair use of copyrighted material is based on

A)the effect of use on the potential market for the work.
B)the time period involved.
C)specific legal guidelines set forth by OSHA.
D)the GAD doctrine.

Question 63

The process of trademark registration is

A)expensive.
B)impossible.
C)one that must be handled by a lawyer.
D)inexpensive.

Question 64

Items that can qualify for patent protection include all of the following except

A)machines.
B)products.
C)processes.
D)ideas.

Question 65

According to the U.S. Patent and Trademark Office, the process of obtaining a patent takes about _____ years.

A)2
B)3
C)4
D)6

Question 66

The text of a patent application is known as the

A)specification.
B)particulars.
C)concept.
D)value.

Question 67

Because of the _____ doctrine, it is sometimes difficult to establish infringement.

A)fair use
B)acquisition
C)freedom of information
D)right to publish

Question 68

A series of short paragraphs, each of which identifies a particular feature that is protected by the patent, is known as a

A)claim.
B)journal.
C)value.
D)plan.

Question 69

Which of the following is recognized as a disadvantage of partnerships?

A)ease of formation
B)possible tax advantages
C)direct rewards
D)lack of continuity

Question 70

To effectively pursue a patent violation, experts recommend that the entrepreneur

A)handle all matters personally.
B)prepare a realistic budget for infringement.
C)fill out a preprinted form obtained from a patent office.
D)sue as quickly as possible.

Question 71

The part of a patent application that defines and limits the patented invention is known as the

A)specification.
B)illustration.
C)claim.
D)concept.

Question 72

The owner of a copyright may do all of the following except

A)reproduce the work.
B)deduct the intrinsic value of the rights from one's taxes.
C)perform the work publicly.
D)display the work publicly.

Question 73

Which of the following is a useful rule used to avoid pitfalls in selecting a trademark?

A)Trust a lawyer's judgment.
B)Copy a competitor's trademark.
C)Avoid abbreviations and acronyms.
D)Never choose a trademark without first conducting a trademark search.

Question 74

The failure of a trademark owner to file an affidavit stating it is in use is referred to as which of the following trademark invalidation reasons?

A)cancellation proceeding
B)a competitor's lawsuit
C)consumer loss of interest
D)cleaning-out procedure

Question 75

The purpose of filing forchapter 13 bankruptcy is

A)liquidation.
B)adjustment.
C)reorganization.
D)allocation changes.

Question 76

The registration of a trademark has a lifetime of

A)20 years plus 5-year renewable periods.
B)25 years.
C)10 years plus 10-year renewable periods.
D)the lifetime of the owner.

Question 77

Patents that are not design patents have _____ years of protection.

A)l5
B)20
C)22
D)25

Question 78

Design patent protection lasts for _____ years.

A)10
B)12
C)15
D)20

Question 79

Which of the following is not a trademark?

A)description
B)logo
C)symbol
D)name

Question 80

A trademark may be invalidated in all of the following ways except

A)cancellation proceedings.
B)cleaning-out procedure.
C)abandonment.
D)generic words.