CellTones, a new company selling several types of cellular phones, has closely modeled its products after successful products that are already in the marketplace. As it prepares to enter the market with its new products and services, which of the following should concern CellTones the most?
A) legal obligations to suppliers and dealers
B) patent laws
C) distribution requirements
D) product liability suits
E) limited warranties

Question

Quizplus · Accepted Answer

CellTones should be concerned with patent laws because models of their products are closely modeled after successful products already in the marketplace. If their products are found to be infringing on existing patents, they could face legal and financial consequences.

CellTones, a New Company Selling Several Types of Cellular Phones