Question 1

Hal patents a new type of running shoe. Hal and Iconic Shoe Company enter into a contract that allows the firm to make and market the shoe in exchange for royalty payments to Hal that decrease after the patent expires. In a previous case, a similar agreement was held to be invalid. According to the dissent in Kimble v. Marvel Entertainment, LLC, stare decisis

A) means "sticking to some wrong decisions."
B) does not require retaining "baseless and damaging precedents."
C) promotes unpredictability and inconsistency in the business world.
D) permits parties to negotiate a licensing agreement that reflects the true value of a patent.

B

Accepted Answer

The dissent in Kimble v. Marvel Entertainment, LLC argues that stare decisis does not require retaining "baseless and damaging precedents." Therefore, the fact that a similar agreement was held to be invalid in a previous case does not necessarily mean that Hal and Iconic Shoe Company's agreement is also invalid. The parties can negotiate a licensing agreement that reflects the true value of the patent, as long as it does not violate any established legal principles or rulings.

Question 2

&#8203;Regional Sales Company expects its sales staff to constantly check their e-mail for work-related messages outside normal working hours. Employees' constant online connectivity with their work raises an issue about&#10;A) &#8203;the definition of work.&#10;B) &#8203;work-related stress.&#10;C) &#8203;the quality of workers' lives.&#10;D) &#8203;overburdened company servers.

Accepted Answer

The issue raised is about the definition of work, specifically whether being constantly connected to work-related emails outside of normal working hours should be considered part of the employee's work responsibilities.

Question 3

Perry, a process server, cannot locate Quinn, the defendant in Rebecca v. Quinn, to serve him with the summons. Perry's legal and effective options for serving process include delivering the summons

A) as an attachment in an e-mail to Rebecca.
B) through a private message to Quinn's Facebook account.
C) via any means over the internet to Facebook.
D) by posting it on any social media forum that Quinn is known to visit.

B

Accepted Answer

In some jurisdictions, courts have allowed service of process through social media if traditional methods fail and it is reasonably certain the defendant will receive it.

Question 4

Cell Service Corporation pads all of its customers' bills with an unexpected fee, adding up to millions in profit for Cell at a small expense for each individual customer. In this situation, the customers could most affordably fight this charge by

A) bringing individual lawsuits.
B) engaging in individual arbitration.
C) filing a class action.
D) taking their case to the state legislature.

Accepted Answer

Filing a class action lawsuit would enable all customers to join forces and fight against the unexpected fee collectively, which would likely be more effective and cost-efficient than individual lawsuits or arbitration. Taking it to the state legislature would also take a longer time and resources compared to a class action.

Question 5

Bailey patents a device that allows its user to pretend to imitate the ability of a superhero copyrighted by Comic Cons, Inc. Bailey and Comic Con enter into a licensing agreement to make and sell the device as a toy to the public. Under the terms of the license, the licensee agrees to pay Bailey royalties of 4 percent. Their contract does not specify an end date. According to a majority of the United States Supreme Court in Kimble v. Marvel Entertainment, LLC, Comic Con can legally stop the payments

A) immediately.
B) never.
C) when the copyright expires.
D) when the patent expires.

Accepted Answer

According to the majority opinion in Kimble v. Marvel Entertainment, LLC, a licensee is required to pay royalties for as long as the patent is valid, unless there is an express provision in the contract that allows for royalties to end before the patent expires. Therefore, Comic Con can legally stop the payments when the patent expires.

Question 6

Eduardo applies for credit with Freeway Auto Sales Ltd. Freeway informs Eduardo that "any claim arising from this deal must be resolved through mandatory arbitration." Through this clause, Freeway will most likely avoid all of the following except

A) a lengthy resolution process.
B) engaging in individual arbitration.
C) responding to a class action.
D) settling a groundless claim.

Accepted Answer

The answer of Eduardo applies for credit with Freeway Auto...

Question 7

Laredo applies for a job with Marketing Inc. Like most employers, Marketing informs Laredo that &#34;any claim relating to this application or employment shall be settled by&#8203;&#10;A) &#8203;arbitration.&#34;&#10;B) &#8203;class action.&#34;&#10;C) &#8203;collective decision making.&#34;&#10;D) &#8203;individual lawsuits, not class action.&#34;

Accepted Answer

The language used by Marketing Inc. indicates that they prefer arbitration to settle any disputes related to Laredo's application or employment. This means that Laredo would not be able to pursue a traditional lawsuit in court and would instead have to participate in an arbitration process.

Question 8

Salma wishes to file a suit in a Texas state court against Ubi. Texas allows for service of process via social media if Salma can authenticate Ubi's social media account. Allowing service of process only by means of social media raises a question whether that service comports with

A) due process.
B) the Federal Rules of Civil Procedure.
C) the freedom to contract.
D) the rules of evidence.

Accepted Answer

Allowing service of process only via social media raises a question about whether it meets the requirements of due process, which is a constitutional right that must be upheld in legal proceedings.

Question 9

Window Glass Company, like other businesses, has in interest in staying in business. From this perspective, with respect to resolving disputes through arbitration, individual litigation, and class actions, Window is ethically required to

A) curb a bad practice.
B) engage in harmful conduct.
C) exhaust its assets to litigate or settle a case.
D) generate fees for lawyers.

Accepted Answer

Window Glass Company, being concerned about staying in business, should adopt ethical practices to resolve disputes, which may include curbing bad practices that could negatively impact their reputation or business operations.

Answer: C 
 Window Glass Company is not ethically required to exhaust its assets to litigate or settle a case, as this could harm the business and its stakeholders. It should prioritize cost-effective and efficient means to resolve disputes.

Answer: D 
 Window Glass Company is not ethically required to generate fees for lawyers, as this may not necessarily benefit the company or its stakeholders. Instead, the company should focus on resolving disputes in a fair and just manner.

Therefore, the best choice is A only, as it emphasizes the importance of ethical behavior in resolving disputes.

Question 10

Security Patrols Inc. requires its employees to respond to work-related text messages delivered via their company-issued smartphones while on duty in the workplace and while off duty elsewhere. Security's employees might successfully sue their employer for

A) ownership of the company's smartphones.
B) a decrease in the quality of life.
C) a violation of the right to disconnect.
D) unpaid overtime.

Accepted Answer

The answer of Security Patrols Inc. requires its employees to...

Deck 52: The Legal Environment of Business