Deck 8: A: Online Developments:

Question 1

Pay-to-Buy.com,Inc.,applies to the U.S.Patent and Trademark Office for a patent on an online payment system.Business process patents are more likely to lead to litigation than patents oa tangible inventions because business process patents often involve

A)fields that provide services.
B)machines.
C)processes that incorporate computer programs.
D)transformations of particular articles into different states or objects.

Answer 1

A

Question 2

If,in Hadley v.Baxendale,the Hadleys had communicated adequately to Baxendale that the crankshaft they were sending to him for repair was the only one they had,the court would most likely have held,with respect to the profit lost while the mill was closed,that the Hadleys were

A)not entitled to this amount from Baxendale.
B)entitled to this amount from Baxendale.
C)required to pay this amount to Baxendale.
D)required to pay this amount to the court.

Answer 2

B

Question 3

Fleet Feet,an online travel company,buys blocks of rooms from Grande Hotel,a hotel in Hyper City,at a wholesale rate.Fleet Feet reslls the rooms to consumers at a retail rate.One recent effort by cities to collect taxes from e-commerce has focused on

A)hotels that sell blocks of rooms at wholesale rates.
B)non-resident consumers who reserve rooms in in-state hotels.
C)online travel companies.
D)the dire financial straits of the cities during the latest recession.

Answer 3

C

Question 4

The Fair and Accurate Credit Transactions Act of 2003 prohibits merchants from priniting more than the last five digits of a credit card number or the expiration date on any receipt provided to the cardholder at the point of sale.According to recent court decisions,this requirement applies to

A)e-mailed receipts only.
B)paper receipts and paperless receipts of all kinds.
C)paper receipts only.
D)Web page screen shots and paper receipts only.

Question 5

Barrie is induced to leave a sales position with Car Town Auto Dealership due to a false promise by Delacroix,a sales supervisor at Rev Up Motors,as to the amount of compensation Barrie would earn at Rev Up.Barrie is most likely a victim of

A)fraud.
B)mistake.
C)nothing.
D)puffery.

Question 6

Klint and Lorenz agree to a contract.Later,Klint alleges that his performance is impossible or at best impracticable because of circumstances unforeseen at the time the contract was formed.Hans files a suit,claiming breach.In Germany,if the court agrees with Klint,the most likely remedy is

A)damages.
B)reformation.
C)rescission.
D)specific performance.

Question 7

The truncation (shortening)requirement of the Fair and Accurate Credit Transactions Act of 2003 applies only to receipts that are "electronically printed." Eagle Motorcycle Rents accepts reservations on-site and online.On-site customers are given tangible paper receipts.Online customers are sent an online confirmation.The truncation requirement applies to

A)Eagle's online confirmations only.
B)Eagle's tangible paper receipts only.
C)Eagle's online confirmations and tangible receipts.
D)none of Eagle's confirmations or receipts.

Question 8

GPS Devices Inc.sponsors a "Finders Keepers!" contest in which Erwin and other entrants agree to race to certain locales to win small prizes and collect clues that lead to the "Grand Lost Treasure," which the first finder will be awarded.GPS reserves the right to cancel the contest or change its terms at any time.If Erwin challenges this reservation in court,the court will most likely hold that GPS can

A)cancel the contest or alter its terms at any time.
B)not modify the terms of the contest after it begins.
C)reduce the amount of the small prizes but not the grand prize.
D)reduce the amount of the grand prize but not the small prizes.

Question 9

The Anti-Counterfeiting Trade Agreement established an international governing body to be

A)subject to the World Intellectual Property Organization.
B)under the auspices of the World Trade Organization.
C)part of the Internet Corporation for Assigned Names and Numbers.
D)separate and distinct from existing organizations.

Question 10

Ilsa and Janis agree to a contract.Later,Ilsa alleges that her performance is impossible or at best impracticable because of circumstances unforeseen at the time the contract was formed.Frieda files a suit,claiming breach.In the United States,if the court agrees with Eva,the most likely remedy is

A)damages.
B)reformation.
C)rescission.
D)specific performance.

Question 11

Tour Vista,an online travel company,buys blocks of rooms from Skyview Towers,a hotel in River City,at a wholesale rate.Tour Vista reslls the rooms to consumers at a retail rate.In recent efforts to collect taxes from e-commerce,some cities claim that hotel occupancy taxes should be assessed and remitted directly to the cities based on

A)the dire financial straits of the cities during the latest recession.
B)the retail rates of the rooms.
C)the states of residency of the consumers who reserve the rooms.
D)the wholesale rates of the rooms.

Question 12

New York enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include dismembering or sexually assaulting the image of a human being." On appeal from a challenge by gamemakers,the state asks a federal court to enforce the statute.Based on the decisions of other federal courts in cases involving similar statutes,the court in this case is most likely to

A)refuse to extend restrictions on sex-based content to violence in video games.
B)expand the label's warning to include other forms of violence.
C)impose market-share liability on makers of violent video games.
D)replace the voluntary rating system currently in use.

Question 13

Winston applies to the U.S.Patent and Trademark Office for a patent on a process that uses transactions to hedge the risk in securitiies (stocks and bonds)trading.The patentability of business processes is controversial because business process patent applications involve

A)computer programs.
B)ideas.
C)machines.
D)transformations of particular articles into different states or objects.

Question 14

Girard accepts a job with Deep Vault Bank in reliance on assurances that Deep Vault will not soon be sold.In fact,negotiations to sell the bank are under way at the time that Girard is hired.Girard is most likely a victim of

A)fraud.
B)mistake.
C)nothing.
D)puffery.

Question 15

Iowa enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include killing and maiming the image of a human being." Gamemakers file a suit against the state to block the statute's enforcement.Based on the decision of a California court in a case involving a similar statute,the court in this case is most likely to rule that the statute

A)extends restrictions on sex-based content to violence in video games.
B)violates the First Amendment's guarantee of freedom of speech.
C)imposes market-share liability on makers of violent video games.
D)replaces the voluntary rating system currently in use.

Question 16

Sports Fit Company sponsors the "$100,000 Game" in which contestants compete in ten separate athletic events over a period of weeks.Sports Fit announces that the winner of each event will be awarded $5,000 with the "Ultimate Champion"-the winner of the most events-awarded $50,000.If the "$100,000 Game" is treated as a unilateral contract,Sports Fit can

A)cancel the contest or alter its terms at any time.
B)not modify the terms of the contest after it begins.
C)reduce the amount of the event prizes but not the grand prize.
D)reduce the amount of the grand prize but not the event prizes.

Question 17

Genie.com initiates an online dating service.To attract subscribers and encourage participation,Genie.com creates and posts profiles of fictitious persons and exaggerated profiles of actual users.Fooled by a false profile,Ham files a suit against Genie.com,claiming fraud.The court will most likely

A)dismiss the suit under the Communications Decency Act.
B)allow Ham's claim to proceed to trial on the claim of fraud.
C)allow Ham's suit to proceed but on the ground of embarrassment.
D)allow Ham's suit to proceed but on the ground of mistake.

Question 18

In Hadley v.Baxendale,the Hadleys did not communicate adequately to Baxendale that the crankshaft they were sending to him for repair was the only one they had.The court held,with respect to the profit lost while the mill was closed,that the Hadleys were

A)not entitled to this amount from Baxendale.
B)entitled to this amount from Baxendale.
C)required to pay this amount to Baxendale.
D)required to pay this amount to the court.

Question 19

The Anti-Counterfeiting Trade Agreement applies to

A)pirated copyrighted works distributed via the Internet.
B)personal financial information on its owner's laptop.
C)legally downloaded recordings on a user's iPod.
D)a business firm's trade secrets cached on the firm's server.

Question 20

Sylvia creates a profile for Today's Date,Inc.,an online dating service.She exaggerates her appealing features and posts a photo of her friend Uva,whom Sylvia thinks is prettier.Enticed by the profile,Van contacts Sylvia.Disappointed,Van files a suit against Today's Date,claiming fraud.The service is most likely

A)immune from liability under the Communications Decency Act.
B)liable for fraud.
C)liable on the ground of embarrassment.
D)liable on the ground of mistake.

Question 21

Orly's debts are discharged in a liquidation bankruptcy.Pester & Recover,Inc.,buys the discharged debt obligations.With respect to these debts,Pester

A)can do nothing.
B)can pressure Orly into paying them.
C)must give Orly additional help to rebuild her life after the discharge.
D)must report the debts to credit reporting agencies as "discharged."

Question 22

Dale's debts are discharged in a liquidation bankruptcy.With respect to Dale's prebankruptcy debt,Even Stevens Credit Reporting Agency must automatically report

A)nothing.
B)the debt as "discharged," except the nondischargeable debt.
C)the debt as "discharged," including the nondischargeable debt.
D)the debt as "unpaid."