Critical Thinking Question. 1) Laura was swimming in a public pool and did not notice that her emerald ring slipped off her finger. To comfort Laura, Jeffry presented her a ring with a ruby. When a friend said that the ruby was a fake one, angry Laura tossed the ring into a trash can. Later Wendy found Laura's emerald ring in the pool, and Clara found Laura's ruby ring in the trash can. Discuss what legal terms describe rings that left Laura's possession and who now owns them.

Multiple Choice Questions 1) What property is included in the term "intellectual property"? A) Fungible goods B) Real estate C) Tangible personal property D) Trade secrets Answer: 2) What does the abbreviation "IP law" stand for? A) Intellectual property law B) Individual patents law C) Inventive possessions law D) None of the above Answer: 3) Under the U.S. Constitution, what protection authors and inventors receive for their work? A) Full monopoly for a limited time B) Some form of a limited monopoly C) Full monopoly in perpetuity D) No protection Answer: 4) What is an example of an intellectual property? A) "Mona Lisa" picture by Leonardo da Vinci B) Book about Leonardo da Vinci C) Video recording of a movie about Leonardo da Vinci D) All of the above Answer:

5) What is a type of a patent? A) Utility B) Design C) Plant D) All of the above Answer: 6) What term describes an invention for which the protection period covered by a patent had expired?? A) Public domain B) Public possession C) Civic assets D) Communal property Answer: 7) Under the modern U.S. patent law, who receives a patent for an invention? A) First inventor to invent B) First inventor to produce C) First inventor to file for patent protection D) First inventor to announce Answer 8) What term describes the unauthorized selling of a patented invention during the term of the patent? A) Patent breach B) Patent infringement C) Patent encroachment D) Patent contravention Answer:

9) What damages are granted by the Patent Act to a person winning a patent infringement case? A) Treble B) Double C) Quadruple D) No damages are granted Answer: 10) What can be used by a business as a trademark? A) Word B) Name C) Symbol D) All of the above Answer: 11) According to federal case law, what trademark is distinctive? A) Fanciful B) Ordinary C) Beautiful D) Memorable Answer: 12) What does a descriptive mark have to acquire to become distinctive? A) Inferior meaning B) Secondary meaning C) Resulting meaning D) Derivative meaning Answer: 13) What term describes the unauthorized use of a trademark in a commercially similar way? A) Trademark dilution B) Trademark infringement C) Trademark imitation

D) Trademark replication Answer: 14) What is an example of former trademarks that were lost by becoming a generic term? A) Kleenex B) Aspirin C) Bikini D) All of the above Answer: 15) What kind of work can be copyrighted? A) Computer program B) Dance C) Photograph D) All of the above Answer: 16) What is protected by copyright law? A) Commonly known facts about Mozart's life B) Idea about a movie describing Mozart's life C) Original novel describing Mozart's life D) Idea about a book describing Mozart's life Answer: 17) What is an exception to copyright infringement? A) Just use doctrine B) Fair use doctrine C) Moderate use doctrine D) Reasonable use doctrine Answer 18) What is necessary for a literary work to be protected under the copyright law? A) Be registered with the U.S. Copyright Office

B) Be published C) Be created in a tangible medium of expression D) Be posted on the Facebook Answer: 19) In 2016, what act did the U.S. Congress pass to protect trade secrets? A) Defend Trade Secrets Act B) Protect Trade Secrets Act C) Trade Secrets Shield Act D) Trade Secrets Shelter Act Answer: 20) What term describes agreements signed by a company's employees consenting to refrain from disclosing the company's trade secrets to others? A) Privacy B) Secrecy C) Confidentiality D) Discretion Answer: True/False Questions 1) In business, one person often acts on behalf of another in dealing with third parties. Answer: 2) In traditional agency relationships at least one party in the relationship owes a duty to act for the benefit of another. Answer: 3) When an agent is authorized by the principal to enter into a contract on the principal's behalf, the resulting contract is between the agent and the third party. Answer: 4) When a third party deals with an agent and is not aware of the agency relationship, the principal is known as a partially undisclosed principal. Answer: 5) It is possible for a principal to conceal its identity even beyond being an undisclosed principal. Answer:

6) In some states, an agent can be liable for a contract made on behalf of a partially disclosed principal. Answer: 7) A special agent is a person authorized to carry out a single transaction. Answer: 8) When goods are sold on consignment, they are left by a bailor with a bailee who tries to sell them. Answer: 9) The bailee to whom the goods are consigned for sale is a principal. Answer: 10) Agents' express authority may be done only in writing. Answer: 11) In addition to express authority given to them, agents have some implied authority. Answer: 12) Authority created when a principal makes it appear that an agent has authority when none actually exists, is called agency by ratification. Answer: 13) Employer-employee liability was once referred to as the landlord-farmer rule. Answer: 14) The scope of employment is always limited to the employee's stated job description. Answer: 15) It is possible for volunteers to make their organizations vicariously liable.

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