Deck 34: Legal Issues in Business and Commerce

Question 1

Nya,who lives in Maryland,uses different Internet connections and false addresses and aliases to advertise sham products via 12,000 pieces of e-mail each day.The e-mail is routed through servers in Virginia.Under Virginia state law,this is

A)a felony because Nya sends more than 10,000 pieces of spam a day.
B)not a crime because the products are sham.
C)not a crime because Virginia regulates e-mail,not spam.
D)not a crime over which Virginia has jurisdiction.

Answer 1

A

Question 2

To protect trade secrets,My-T Security Corporation requires its employees to sign confidentiality agreements.A court is likely to enforce these agreements unless

A)My-T employees are uncertain how to handle confidential documents.
B)My-T employees have limited access to the "secrets."
C)My-T employees leave the firm's employ to work for a competitor.
D)the "secrets" are generally known outside My-T's business.

Answer 2

D

Question 3

Like most successful companies,Paychex,Inc. ,has trade secrets that have commercial value.The law protects those secrets indefinitely only if

A)Paychex employees do not divulge the information to outside parties.
B)Paychex employees do not handle confidential documents.
C)Paychex employees never leave the company's employ.
D)the information is not generally known and is kept secret.

Answer 3

D

Question 4

One night,Bertram discovers Clu,an intruder,in Bertram's Deli Delite store after the store is closed.Bertram shoots and kills Clu.With respect to criminal prosecution for this use of deadly force,under a duty-to-retreat law Bertram

A)is presumed innocent or may be exempt from prosecution.
B)must prove that he first told Clu to "Get out!" or to "Retreat!"
C)must prove that he first tried to retreat or that his life was in danger.
D)must prove that Clu did not try to retreat or acted without regard for his own life.

Question 5

Pop Pix,Inc. ,owns and sells photos from its database on the Internet.Query Corporation operates a search engine that displays its results in thumbnail images,which sometimes include copies of Pop Pix's photos,without its permission.Query's use of the photos is most likely

A)a fair use.
B)a license.
C)a novel and not obvious use.
D)a violation of intellectual property law.

Question 6

FotoFinder is a search engine that finds images on the Internet,displays them in lower-resolution thumbnail versions,frames them as they appear in their original Web locations,and links to those sites.Some users of FotoFinder infringe on the rights of the images' owners.FotoFinder's use of the images is most likely

A)a fair use.
B)a license.
C)a novel and not obvious use.
D)a violation of intellectual property law.

Question 7

O.K.Valve Company applies for a patent for a valve.Meanwhile,O.K.licenses its products,including the valve,to Petro Pumps,Inc. ,which uses the valve to make oil pumps.Under the terms of the license,Petro agrees to pay royalties on O.K.'s "patented" products.When a patent is granted on the valve,O.K.asks Petro to pay royalties on the sales of its pumps.Petro wants to challenge the validity of O.K.'s patent.According to the majority in MedImmune,Inc. ,v.Genentech,Inc.case,a patent licensee can challenge the validity of a licensed patent

A)only after breaching the license agreement.
B)only before breaching the license agreement.
C)without breaching the license agreement.
D)under no circumstances.

Question 8

Lew uses a number of Internet connections and false addresses and aliases to advertise via e-mail a variety of genuine products and services.Under Maryland state law,this is

A)a crime because Lew uses more than one Internet connection.
B)a crime because Lew uses false addresses and aliases.
C)not a crime because the laws regulate spam,not e-mail.
D)not a crime because the products and services are genuine.

Question 9

One night,Izzy discovers Joe,an intruder,in Izzy's Kwik Spot convenience store after the store is closed.Izzy shoots and kills Joe.With respect to criminal prosecution for this use of deadly force,in a state that has a stand-your-ground law,Izzy

A)is presumed innocent or may be exempt from prosecution.
B)must prove that he first told Joe to "Stop!" or "Stand your ground!"
C)must prove that he first tried to retreat or that his life was in danger.
D)must prove that Joe did not try to retreat or acted without regard for his own life.

Question 10

OmniChem Corporation applies for a patent for a certain chemical compound.Meanwhile,OmniChem licenses its products,including the compound,to Pharmo,Inc. ,which uses the compound to make an anti-cancer prescription drug.Under the terms of the license,Pharmo agrees to pay royalties on OmniChem's "patented" products.When a patent is granted on the compound,OmniChem asks Pharmo to pay royalties on the sales of the anti-cancer drug or stop selling it.Pharmo files a challenge to the validity of OmniChem's patent.Both firms assert their claims less from an interest in profit than a belief in the "rightness" of their respective causes.This position might arguably be

A)illegal.
B)optimal.
C)socially irresponsible.
D)unethical.

Question 11

In the facts of the previous question,according to the dissent in MedImmune,Inc. ,v.Genentech,Inc.case,a patent licensee can challenge the validity of a licensed patent

A)only after breaching the license agreement.
B)only before breaching the license agreement.
C)without breaching the license agreement.
D)under no circumstances.