Deck 9: Legal Challenges of Entrepreneurial Ventures

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

Entrepreneurs should be knowledgeable about certain legal concepts that affect their business venture.

Question 5

Laws governing intellectual property rights include copyrights, trademarks, and leases.

Question 6

The patent process is not complex; neither does it require careful planning.

Question 7

Copyrights have to be registered with the Copyright Office.

Question 8

Design patents last for 20 years.

Question 9

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

Question 10

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

Question 11

Patents eventually expire.

Question 12

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

Question 13

An example of a trademark is a logo.

Question 14

Trademark registration and search is not costly.

Question 15

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

Question 16

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

Question 17

A patent is an intellectual property right.

Question 18

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

Question 19

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

Question 20

Every business at some point needs the services of an attorney.

Question 21

A patent gives the holder a temporary

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

Question 22

Straight bankruptcy is often called liquidation.

Question 23

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

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

Question 24

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

Question 25

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

Question 26

The two parts to a patent application are specification, and .

A) claims
B) percentage
C) value
D) perception

Question 27

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 28

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

Question 29

Design patent protection lasts for _____ years.

A) 10
B) 12
C) 14
D) 20

Question 30

The text of a patent application is known as the

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

Question 31

Chapter 7, Chapter 9, and Chapter 11 are the most common forms of bankruptcy.

Question 32

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

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

Question 33

According to the U.S. Patent Office, the process of obtaining a patent takes how many months?

A) about 24 months
B) about 36 months
C) about 48 months
D) about 60 months

Question 34

Chapter 13 bankruptcy involves a reorganization of the enterprise.

Question 35

That part of a patent application which identifies the features that are protected are known as the

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

Question 36

At present, it is illegal to attempt incorporation over the Internet.

Question 37

That part of a patent application which identifies the features that are protected are known as the

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

Question 38

There are two parts to a patent application, claims and .

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

Question 39

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

Question 40

Business owners normally prefer Chapter 7 bankruptcy over any other form of bankruptcy.

Question 41

An infringement budget deals with

A) legal battles.
B) government bribes.
C) the outside molding of a building.
D) advertising expenditures.

Question 42

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 43

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 44

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 45

Legal protection is granted to computer programs in what form?

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

Question 46

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 47

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 48

The specification section of a patent application should include all of the following except

A) an introduction.
B) examples and/or experimental results.
C) a summary of invention.
D) a budget for handling infringement.

Question 49

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

A) a prison term.
B) infringement.
C) a monetary payment equal to proven damages.
D) two times annual sales.

Question 50

Copyrights may be expressed in

A) books.
B) periodicals.
C) motion pictures.
D) all of the above.

Question 51

Copyrights can be placed on all of the following except

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

Question 52

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 53

Which of the following are not trademarks?

A) symbols
B) mottos
C) names
D) generic words

Question 54

A person who loses an infringement battle in court may have to pay

A) extra legal fees.
B) damages of up to five times the actual amount.
C) higher profits due to the infringement.
D) the taxpayers back.

Question 55

If an entrepreneur concludes that an innovation will withstand any legal challenge, a patent should be

A) dropped.
B) pursued.
C) integrated.
D) obfuscated

Question 56

Which of the following is not a trademark?

A) a sales price
B) a logo
C) a symbol
D) a name

Question 57

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

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

Question 58

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

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

Question 59

The determination of fair use of copyrighted material is based on

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

Question 60

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 61

Which of the following falls under Chapter 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 62

Which of the following are suggestions 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 63

Which of the following is a way in which a trademark may be invalidated?

A) cancellation proceeding
B) a competitor's lawsuit
C) consumer loss of interest
D) once a trademark is established, no legal action can invalidate it

Question 64

How does death affect 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 usually unaffected by the death of a shareholder.
D) A corporation is usually unaffected by the death of a shareholder unless a general partner dies.

Question 65

The process of trademark registration is

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

Question 66

Who 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 67

Which is not one of the major sections of the bankruptcy act?

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

Question 68

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

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

Question 69

All of the following are ways of invalidating a trademark except

A) cleaning-out proceedings.
B) clearing-out proceedings.
C) abandonment.
D) generic meaning.

Question 70

Of the following statements, which is True of sole proprietorships?

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

Question 71

Specific forms of partnership include which of the following?

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

Question 72

A typical symptom of impending bankruptcy failure 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 73

From where does an S corporation take its name? corporation takes its name from

A) Subchapter S of the Internal Revenue Code
B) state law
C) S Lab
D) Uniform Commercial Code

Question 74

In the context of trademark invalidation, if a party seeks to prove that a trademark has not been used within six years of registration, it is known as

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

Question 75

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

A) other firms selling advanced products
B) retailer overstocked
C) liquidation
D) R&D budget proportionally less than competition

Question 76

When considering bankruptcy, entrepreneurs as sole proprietors normally prefer

A) Chapter 5.
B) Chapter 7.
C) Chapter 11.
D) Chapter 13.

Question 77

All of the following are recognized as advantages of partnerships except:

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

Question 78

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 79

B corporations' legal structure expands corporate accountability to encompass all of the following except:

A) lower legal accountability standards
B) comprehensive and transparent environmental standards
C) comprehensive and transparent social performance standards
D) good for society

Question 80

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) cleaning-out procedure.
D) generic meaning.