Deck 15: Regulation and Licensing

Question 1

A fast-food franchisor required its franchisees to sell a certain type of ice cream and no other. Which of the following would not be a consideration in determining whether this arrangement violates antitrust laws?

A) The franchisor owns 20 percent of the ice cream company from which it requires its franchises to purchase.
B) The franchisor's reason for requiring the franchisees to use the specified ice cream is to increase the profits of the franchisor.
C) The franchisor has all the necessary licenses to operate the restaurant.
D) The franchisor does not dominate the ice cream market.

Answer 1

C

Question 2

Which of the following is not true about a lawsuit for trademark infringement?

A) The plaintiff must prove that it owns the trademark.
B) The plaintiff must prove that defendant's use of a similar mark is likely to cause confusion among the public as to the source of the product.
C) The plaintiff must prove it suffered a loss in sales as a result of the trademark infringement.
D) The plaintiff must approve that the defendant's name is likely to mislead customers.

Answer 2

C

Question 3

Governments can impose license fees that exceed the cost of administering the license and can use the money for the general operation of the government.

Answer 3

False

Question 4

Jim owned property that he wanted to use for a snack bar. The local zoning ordinances prevented such use. He may nonetheless be able to open a snack bar on the property if he receives from the local government:

A) A variance
B) A license
C) Divestiture
D) A copyright

Question 5

The Byway Motel installed a satellite system that enables it to intercept cable programs and exhibit them in guest rooms without contracting with cable TV for the service or paying any money for it. Which of the following is true?

A) TV programs cannot be copyrighted, so the motel's actions do not constitute infringement.
B) The unauthorized interception and exhibition by the motel constitute copyright infringement.
C) Motels are entitled to use copyrighted programs without payment since the motels serve the public. Therefore, the Byway Motel's actions do not constitute copyright infringement.
D) Whether or not the motel is liable for copyright infringement depends on whether its exhibiting of the copyrighted program was intentional or inadvertent.

Question 6

Quadruple damages is a penalty for violation of the antitrust laws.

Question 7

One of the primary objectives of antitrust laws is:

A) To minimize competition in industries with limited markets
B) To enhance the ability of manufacturers to transport their products to market
C) To maintain reasonable prices on goods offered for sale
D) To ensure that all sellers within an industry have more-or-less equal income

Question 8

Heather owns an Arby's Restaurant (a fast-food operation selling roast beef and chicken sandwiches, among other menu items). Which of the following best describes Heather?

A) Trademark owner
B) Franchisor
C) Franchisee
D) Licensing body

Question 9

Which of the following is not included in the right to due process granted to a licensee whose license may be revoked?

A) Right to a lawyer paid by the government
B) Reasonable notice of the grounds for revocation
C) A hearing
D) A reasonable amount of time between the notice and the hearing to prepare a defense

Question 10

Which of the following is a per se antitrust violation?

A) Price fixing
B) Mergers
C) Resale price maintenance agreements
D) Territorial division agreements

Question 11

Zoning laws can prevent an owner of land from using it to operate a restaurant.

Question 12

Which of the following is not an objective of zoning laws?

A) To achieve balanced development in an area
B) To protect the environment
C) To preserve the residential quality of neighborhoods
D) To minimize the adverse effects of an inappropriate location for certain types of business

Question 13

When a licensing body is considering whether or not to grant a license, a legitimate consideration is public opposition to the business seeking the license.

Question 14

A hotel may be held liable for acts of its managers that violate antitrust laws.

Question 15

The primary purpose of statutes that require hotels to post their rates is to enable travelers seeking rooms to comparison-shop.

Question 16

Which of the following is not a penalty for operating a business without a required license?

A) Fines
B) Refusal by courts to enforce contracts of the unlicensed business
C) Jail
D) Mandatory attendance at an educational program

Question 17

Dan is about to open a restaurant. Which of the following is not one of the licenses or permits the local government may require that he obtain?

A) A restaurant operator's license
B) A liquor license
C) A recycling license
D) A health permit

Question 18

A motel charged a higher fee for single women registering for a room than for a single man. True or false: This constitutes illegal discrimination.

Question 19

An applicant for a license may be denied the license if the applicant's history evidences an inclination to disregard the law.

Question 20

A restaurant is named Barbecue Delight. Which of the following best describes the name?

A) It is a service mark.
B) It is a trademark.
C) It is a copyright.
D) It is a variance.

Question 21

A copyright owner will lose the benefits of the copyright if the copyrighted item does not contain a copyright notice.

Question 22

The authority of a government to adopt laws that further the public health, safety, and welfare is referred to as the _________________________.

Question 23

A restaurant that uses a name will obtain no rights to the name unless it registers the name as a trademark with the Patent and Trademark Office.

Question 24

The denial of a license will be reversed on appeal if the decision to withhold the license was ___________________________________.

Question 25

Anticompetitive activities that always violate the antitrust laws are called _________________________.

Question 26

Temporary withdrawal of a license by the licensing body is called ____________________.

Question 27

____________________ is a process by which local governments can restrict the way property owners use their land.

Question 28

The main difference between a trademark and a service mark is ____________________________________________________________________.

Question 29

A scientific invention can be copyrighted.

Question 30

Many states have laws barring innkeepers from accepting as guests people they know are registering under false names. The primary purpose of these laws is that false names ____________________________________________________________.

Question 31

The telecast of a sporting event, such as the Super Bowl or Wimbledon Tennis Tournament, can be copyrighted.

Question 32

Before a matter that is within the jurisdiction of a government agency can be heard in court, the ______________________________ must be exhausted.

Question 33

Requiring a business to forfeit part of its operations because it has reached monopoly proportions is called ____________________.

Question 34

The purpose of ASCAP is to ____________________________________________________________.

Question 35

Two remedies for trademark infringement are ____________________________________________________________.