Q&A Hero

Q: An arrangement where an owner of real property borrows money from a lender and pledges the real property as collateral to secure the repayment of the loan is known as ________. A) consignment B) foreclosure C) a mortgage D) an assignment

Q: Rockstar Software, Inc., develops a new series of performance-related video games. The games are most likely pro­tected by a. copyright law. b. patent law. c. trademark law. d. trade secrets law.

Q: Distinguish between secured and unsecured credit.

Q: Kim uses, on her new recording Let's Go, the guitar solo from Malcolm's digital sound recording without his permission. This is a. copyright infringement. b. fair use. c. licensing. d. protected expression.

Q: A(n) ________ is an instrument that gives the creditor a security interest in the debtor's property that is pledged as collateral.

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: Personal property that is subject to a security agreement is known as ________.

Q: Donna makes and distributes copies of Every Good Boy Does Fine, a movie copyrighted by Great Films Corporation, without Great Films' permission. Donna may be liable for a. damages, fines, or imprisonment. b. damages only. c. fines or imprisonment only. d. nothing.

Q: ________ is a form of credit that does not require any security to protect the payment of the debt.

Q: Cathy uses, on her new recording Drive By, the melody of a song written by Ed, without Ed's permission. This is a. copyright infringement. b. patent infringement. c. trademark infringement. d. none of the choices.

Q: The lender in a credit transaction is known as the ________.

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. none of the choices.

Q: In a secured credit transaction, the creditor cannot recover the collateral despite the debtor's defaults on the loan.

Q: Felicia invents a new valve to cap undersea oil spills, which she names "Great Catch." She also writes the installation manual to be included with each valve. Felicia could obtain copyright protection for a. the valve. b. the "newness" of the valve. c. the name. d. the installation manual.

Q: Tangible personal property includes securities, patents, trademarks, and copyrights.

Q: In 2011, 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 protecteda. for ten years.b. for twenty years.c. for the life of the author plus seventy years.d. forever.

Q: A lien release can be used by the property owner to defeat a statutory lienholder's attempt to obtain payment.

Q: RiteMade Machinery, Inc., designs, makes, and sells a drill press. Steel Equipment Company copies the design without RiteMade's permission. Steel's conduct is actionable provided a. consumers are confused. b. Steel's conduct is intentional. c. Steel's conduct reduces the value of RiteMade's design. d. RiteMade's design is patented.

Q: A deficiency judgment prevents a secured lender from recovering other property or income from a defaulting debtor if the collateral is insufficient to repay the unpaid loan.

Q: Sights Unseen, Inc., (SUI) sells scopes with distinctively designed and made lenses and mirrors to scientists. Telescopes Etc. Corporation later begins to sell scopes with identical set-ups of lenses and mirrors, without SUI's permission, to consumers. This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. none of the choices.

Q: An improperly recorded mortgage or deed of trust is effective against subsequent purchasers of the subject real property.

Q: Ric designs a new computer hard drive, which he names "Sci Phi." He also writes the operating manual to be included with each final product. Ric could obtain patent protection for a. the hard drive only. b. the name only. c. the operating manual only. d. the hard drive, the name, and the operating manual.

Q: In a mortgage transaction, the creditor is known as the mortgagee.

Q: Phil invents "PhutureNow," 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: A creditor who relies on collateral to secure payment is known as an unsecured creditor.

Q: Mary Kate Corporation allows The Ashley Company to use Mary Kate's trademark as part of The Ashley Company's domain name. This is a. a license. b. a likelihood of consumer confusion. c. cybersquatting. d. trademark dilution.

Q: If a debtor is judgment-proof, the creditor may never collect the debt owed.

Q: E-Shopping Corporation inserts Fiesta Mall, Inc.'s trademark as a meta tag in E-Shopping's Web site's key-words field without Fiesta's permission in a manner that suggests Fiesta authorized the use. This is a. copyright infringement. b. patent infringement. c. trademark infringement. d. none of the choices.

Q: Unsecured credit requires collateral to protect the payment of the debt.

Q: The property in which a security interest is taken is called collateral.

Q: Trevor's business is The Spicy Chocolatier Café chain. "The Spicy Chocolatier Café" is a. a certification mark. b. a collective mark. c. a service mark. d. a trade name.

Q: Ernie's Good Eatin" 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: When is a creditor referred to as a secured creditor? A) when the creditor has been guaranteed payment by a trustee B) when the creditor gives a loan without security C) when the creditor has been repaid the debt D) when the creditor has acquired collateral

Q: Ashton borrows $25,000 from Amanda, who lends the money without taking an interest in collateral for the loan. Amanda is relying on Ashton's credit standing when she made the loan. In this case, what kind of creditor is Amanda? A) an unsecured creditor B) a secured creditor C) an administrative claim creditor D) a post-petition creditor

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: An electronic agent allows for the contracting for the sale and lease of goods over the Internet, using websites to order or lease goods.

Q: USA Transport Company uses a mark associated with its name to distin­guish its services from those of other transport firms. The mark is a. a certification mark. b. a collective mark. c. a service mark. d. trade dress.

Q: Excel Goods, Inc., and Finest Products Corporation use the mark "Good Housekeeping Seal of Approval" to certify the quality of their products. Excel and Finest 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: An e-record is a record created, generated, sent, communicated, received, or stored by electronic means.

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: The signature of a person's electronic agent can constitute a valid electronic signature.

Q: A computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual, is known as a(n) ________. A) electronic agent B) electronic record C) firewall D) operating system

Q: In 2012, Online Marketing Corporation registers its trademark as provided by federal law. After the first renewal, this registration a. is renewable every ten years. b. is renewable every twenty years. c. runs for the life of the corporation plus seventy years. d. runs forever.

Q: What is the difference between a full warranty and a limited warranty?

Q: Sincere Forms, Inc., uses, in its ads, a trademark that is similar, but not identical, to the famous, registered mark of Desired Objects, Inc. Sincere's unauthorized use of the mark constitutes trademark dilution provided a. consumers are confused. b. Sincere and Desired are competitors. c. Sincere's use is intentional. d. Sincere's use lessens the value of Desired's mark.

Q: Give an account of express warranties.

Q: Bubbly Cola features Sparkly Cola's trademark without its owner's permis­sion. Bubbly's use of the mark is actionable provided a. consumers are confused. b. Bubbly's use is intentional. c. Bubbly and Sparkly are not otherwise competitors. d. Sparkly's mark is registered.

Q: Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink under the name "CoCoCafe." Darkroast Java, Inc., later markets a similar tasting drink under the name "KoKoKafe." This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. not infringement.

Q: Pola develops a new espresso machine, which she names "Jump Shot." She also writes the operating manual. Pola can obtain trademark protection for a. the espresso machine. b. the "newness" of the espresso machine. c. the name. d. the operating manual.

Q: The ________ is a federal statute that regulates written warranties on consumer products.

Q: A statement that negates express and implied warranties is known as a ________.

Q: A(n) ________ refers to a warranty that arises where a seller or lessor warrants that the goods will meet the buyer's or lessee's expressed needs.

Q: International copyright protection exists for computer programs as "intellec­tual creations."

Q: Under the Madrid Protocol, a company can register its trademark in more than one country with a single application.

Q: A(n) ________ is a warranty created when a seller or lessor makes an affirmation that the goods he or she is selling or leasing meet certain standards of quality, description, performance, or condition.

Q: Anyone who writes a book has copyright protection in every country in the world.

Q: The doctrine of ________ governed the law of sales and leases for centuries before the UCC was adopted.

Q: If the "as is" type of disclaimer is not used, a disclaimer of the implied warranty of merchantability must specifically mention the term merchantability for the implied warranty of merchantability to be disclaimed.

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

Q: Implied warranties of quality cannot be disclaimed.

Q: A marketing technique can be a trade secret.

Q: The implied warranty of fitness for a particular purpose applies only to merchants.

Q: Pricing information is not a trade secret.

Q: Exchanging pirated, copyrighted works with oth­ers is not a crime unless money is involved.

Q: The implied warranty of merchantability requires that the quality of the goods must pass without objection in the trade.

Q: Downloading software or music into a computer's random access memory without authorization is copyright infringement.

Q: A seller's or lessor's statement of opinion or commendation of the goods does not create an express warranty.

Q: Only written express warranties are valid.

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

Q: In determining whether a copyrighted work is infringed under the "fair use" doctrine, one factor is the effect of the use on the market for the work.

Q: What type of transactions are covered under the Magnuson-Moss Warranty Act? A) consumer transactions B) commercial transactions C) industrial transactions D) governmental transactions

Q: A copy must be exactly the same as the original to infringe a copyright.

Q: Which of the following is true of an "as is" disclaimer? A) It disclaims all implied warranties. B) It disclaims all express warranties. C) It is a type of implied warranty. D) It cannot be replaced by another warranty.

Q: Which of the following constitutes an implied warranty? A) affirmation of the facts of the goods B) description of the goods C) model or sample of the goods D) adequate packaging and labeling of the goods

Q: It is possible to copyright an idea.

Q: Unless properly disclosed, a warranty that is implied that sold or leased goods are fit for the ordinary purpose for which they are sold or leased, as well as other assurances, is known as ________. A) implied volatility B) an implied cause of action C) an implied assertion D) the implied warranty of merchantability

Q: Copyright protection is automaticregistration is not required.

Q: Sam expressed interest in buying a painting from Jasper, whose asking price was $15,000. Sam was only willing to offer $13,000. Jasper told him that it was a very old painting worth a fortune and that others would gladly pay $20,000 for it. Sam decided to buy the painting for $15,000 on the condition that if he found that the painting was worth less than $15,000, Jasper would have to take the painting back and refund Sam. Which of the following warranties did this sales contract have? A) an implied warranty of merchantability B) an express warranty C) a statement of opinion D) an implied warranty of fitness

Q: Patent infringement occurs only if an invention is copied in its entirety.

Q: Which of the following would constitute the creation of an express warranty for goods? A) a description of the goods B) a commendation of the goods C) prior experience with the goods D) affirmation of the value of the goods