1)A distinctive word, name, symbol, or device used by a business to distinguish its goods from those of its competitors is called a _____.

A) service name

B) service mark

C) trade name

D) trademark

2)Licensing agreements require a careful partner selection process that clearly identifies each firm's objectives and details how each plans to meet the other's expectations.

true

false

3)Section 1 of the Sherman Act applies to _____.

A) unilateral actions

B) joint actions

C) nonimport trade

D) mergers

4)A company files a trademark infringement case against another. In order to recover for trademark infringement, the plaintiff generally must show that the:

A) defendant possesses the trademark.

B) defendant used the mark only for insignificant personal reasons.

C) defendant's use of the trademark did not confuse customers.

D) defendant used the mark in commerce.

5)Since the federal government's power to regulate business flows from the Privileges and Immunities Clause of the Constitution, the federal antitrust laws apply to behavior that affects in any way interstate commerce or international trade.

true

false

6)In recent years, there has been a great deal of concern about companies, called patent _____, who purchase patent rights without the intent of directly using them. Instead, these patent-holding firms demand licensing fees from companies who knowingly or unknowingly infringe upon their patent rights.

A) trolls

B) hawks

C) squatters

D) confiscators

7)Which of the following is a drawback of technology licensing?

A) The licensee can sever the licensing relationship and become a competitor after gaining access to the licensor's technology.

B) The licensee runs the constant risk that the licensor will provide inferior service.

C) Licensing maximizes the physical and financial presence of a business overseas, thereby exposing it to risks.

D) Licensing escalates the risks of suffering devastating losses in the event of an expropriation.

8)If one automobile firm merges with another automobile firm, it is called a _____ merger.

A) push down

B) vertical

C) conglomerate

D) horizontal

9)Which of the following is true of joint ventures?

A) They are arrangements in which two or more entities collaborate with respect to research, development, production, marketing, or distribution.

B) They directly violate Section 2 of the Sherman Act.

C) They do not violate Section 1 of the Sherman Act as they involve cooperation between actual or potential competitors.

D) They refer to the acquisition of one company by the other.

10)The Noerr Doctrine prohibits people and businesses from joining together and lobbying governmental officials.

true

false

11)The federal government's right to regulate business is derived from the _____ Clause of the U.S. Constitution.

A) Commerce

B) Equal Protection

C) Due Process

D) Privileges and Immunities

12)To violate Section 2(a) of the Robinson-Patman Act, the discriminatory sales must occur roughly within the same period of time and involve goods of like grade and quality.

true

false

13)If a licensor does not closely monitor the activities of a licensee, it runs the risk that the licensee will produce inferior products or provide inferior service.

true

false

14)A trade secret is also called _____.

A) performance standard

B) contributory copyright

C) compilation of information

D) propriety information

15)When a manufacturer sells goods to retail outlets and suggests a retail price, there is no violation of Section 1 of the Sherman Act because there is no:

A) merger of any type.

B) contract, combination, or conspiracy to fix the price.

C) indication of an intent to monopolize.

D) exclusive dealing contract.

16)When faced with the difficult problem of deciding what kinds of joint actions amounted to a restraint of trade, the courts concluded that some kinds of behavior always have a negative effect on competition and can never be excused or justified. These kind of acts are classed as per se illegal.

true

false

17)An oil producer's merger with an oil refiner is an example of a _____ merger.

A) conglomerate

B) push down

C) horizontal

D) vertical

18)Which of the following statements is true about a trade secret?

A) A trade secret usually receives legal protection even if its owner did not take reasonable precautions to keep it a secret.

B) A trade secret generally does not include devices and compilations of information.

C) A business may attempt to maintain a trade secret when it has a process or product that is not novel enough to receive patent protection.

D) A business may attempt to maintain a trade secret, but its misappropriation is not considered a breach of law.

19)D&J is a company that owns intellectual property. It allows Freedman Bros. to sell their items. Here, D&J will be known as the _____.

A) warrantor

B) protector

C) guarantor

D) licensor

20)A patent:

A) grants its owner the exclusive right to make, use, or sell an invention or process for an indefinite period.

B) deprives competitors of the opportunity to use the invention without the patent holder's consent.

C) creates a permanent monopoly thereby discouraging the creation and utilization of new products and technologies.

D) includes articles or processes falling under the category of physical phenomena or abstract ideas.

21)Section 3 of the Clayton Act applies to:

A) service contracts.

B) true consignments.

C) anticompetitive behavior.

D) formal agreements only.

22)Private plaintiffs who seek to recover treble damages under the Sherman Act need not convince the court that they have standing to sue.

true

false

23)In a typical predatory-pricing scheme, the predator:

A) reflects changing conditions in the marketplace affecting the marketability of competitor's goods.

B) reduces the sale price of its product to below cost, hoping to drive competitors out of business.

C) does not aim to create monopoly.

D) furnishes customers with certain services that were not provided by the competitors.

24)In the United States, which of the following can be patented?

A) New chemical compounds

B) Laws of nature

C) Physical phenomena

D) Abstract ideas

25)As a precondition to receiving trade secret protection, the owner must take reasonable means to maintain secrecy.

true

false

26)An American university professor derives a new formula which explains a fundamental principle of nature. In the United States, this formula:

A) can be patented.

B) cannot be patented.

C) can be patented because it is novel.

D) cannot be patented because it is not useful.

27)Patents, trademarks, copyrights, and trade secrets are basic types of _____ property.

A) intellectual

B) community

C) commercial

D) patented

28)Tie-in contracts:

A) do not violate Section 3 of the Clayton Act regardless of the seller having monopoly power in the tie-in product.

B) do not violate Section 1 of the Sherman Act under any circumstance.

C) violate Section 3 of the Clayton Act if the seller has foreclosed competitors from a substantial volume of commerce in the tied product.

D) violate Section 7 of the Clayton Act if they violate Section 1 of the Sherman Act.

29)In the United States, the copyright period for works for hire:

A) is 110 years from the first publication or 140 years from creation, whichever comes first.

B) lasts for the life of the author plus 70 years.

C) is 95 years from the first publication or 120 years from creation, whichever comes first.

D) lasts for the life of the author plus 120 years.

30)Horizontal price-fixing:

A) is also called resale price maintenance.

B) occurs when the manufacturer gets the retailer to agree to follow the suggested retail price.

C) can be legally justified if there was a direct agreement between competitors.

D) is an attempt by competitors to interfere with the market and control prices.