Week 10

QUESTION 1

Chapter 7 bankruptcy is also known as

		reorganization.
		reaffirmation.
		voluntary bankruptcy.
		straight bankruptcy.

QUESTION 2

The vast majority of patents that are issued are

		design patents.
		plant patents.
		utility patents.
		intellectual patents.

QUESTION 3

Under the TILA, a qualified mortgage (QM)

		limits upfront points and fees to 5 percent.
		limits all of a borrower's debt to 43 percent of his or her income.
		allows balloon payments only if the borrower agrees up front.
		must allow for interest only periods.

QUESTION 4

Andy's business is not able to pay its debts, and the prospects for its finances to improve are slim. Andy decides not to continue the business. In this case, Andy should file a voluntary petition for which type of bankruptcy?

		Chapter 7.
		Chapter 11.
		Chapter 13.
		Chapter 12.

QUESTION 5

Mabel is a single 40-year-old who has borrowed money on numerous occasions. Her payment record has been good, except she has been delinquent in paying a few bills. Which of the following is true regarding credit information gathered on Mabel?

		Since Mabel has been delinquent, she waives her right to see the credit files.
		If Mabel is rejected for a loan because of the consumer report, the lender must tell her the name of the agency that supplied the report.
		Mabel has a right to have the information regarding her delinquency in paying a few loans stricken from her credit record because her record has generally been good.
		Mabel's delinquencies can be reported by credit reporting agencies for a period of twelve years.

QUESTION 6

"Bait-and-switch" is

		advertising a product for sale and then giving the customer a rain check.
		placing the store brand and the national brand side-by-side in a store to confuse customers.
		selling the store brand at a lower price than the national brand.
		advertising certain goods and then pressuring the customer to buy different, more expensive goods.

QUESTION 7

Which of the following statements concerning a Chapter 11 reorganization plan istrue?

		A reorganization plan will be confirmed by the court only if a majority of each class of creditors votes in favor of the plan.
		A reorganization plan can be confirmed by the court over objections of some creditors if the court determines that the plan is feasible and fair.
		Only the bankruptcy court has the authority to confirm or reject the reorganization plan. Creditors do not have a right to vote on the plan.
		A reorganization plan binds only the debtor and not the creditors.

QUESTION 8

Which of the following is a primary goal of the Bankruptcy Code?

		to preserve as much of the debtor's property as possible .
		to pay off the debtor's creditors as quickly as possible.
		to secure debt counseling for the debtor.
		to keep the debtor from falling behind in payments.

QUESTION 9

When a debtor no longer has an obligation to pay a debt, that debt has been

		terminated.
		revoked.
		completed.
		discharged.

QUESTION 10

Ernest invents a novel, useful, nonobvious product. He

		must apply for a patent within one year of selling the product commercially.
		is entitled to a patent over someone else who invents the same product if he is the first to invent it.
		may receive patent protection for two years by filing a simpler, shorter, cheaper provisional patent application while he is working on his complex, regular patent application.
		may sell his product for up to five years to see how well it sells before going through the complex process of filing a patent application with the PTO Office.

QUESTION 11

The maximum rate of interest for credit transactions is established by

		state law.
		federal law.
		the Federal Reserve Board.
		the FTC.

QUESTION 12

Under the Fair and Accurate Credit Transactions Act (FACTA),

		a creditor may not discriminate against a borrower on the basis of race, sex, religion, or age.
		a debt collector may not harass or abuse debtors.
		a credit card company must promptly investigate and respond to any consumer complaints about a credit card bill.
		a consumer has the right to obtain one free credit report every year from each of the three major reporting agencies.

QUESTION 13

What is the name of the treaty that allows American patents to be recognized and enforced in member countries?

		the Paris Convention for the Protection of Industrial Property.
		the International Treaty of Trademarks and Patents.
		the World Agreement of London.
		the Berne Convention.

4 points

QUESTION 14

The Fair Debt Collection Practices Act prohibits which of the following practices by a debt collector?

		falsely representing himself as a lawyer.
		telephoning the debtor at 8:00 a.m.
		visiting a debtor at work if the employer permits personal visits.
		using neighbors to locate the debtor.

QUESTION 15

A form stating the name of an unsecured creditor and the amount of the claim against the debtor is called a(n)

		order for relief.
		automatic stay.
		proof of claim.
		reaffirmation form.

QUESTION 16

Iris received a discharge under a Chapter 7 bankruptcy. She cannot receive another discharge under Chapter 7 for at least

		six years after the prior filing.
		eight years after the prior filing.
		ten years after the prior discharge.
		She cannot file another Chapter 7, but could file a Chapter 11 or 13 bankruptcy.

QUESTION 17

Which is NOT a provision of the Digital Millennium Copyright Act?

		It is illegal to delete copyright information or distribute false copyright information.
		It is illegal to use copyrighted material under any circumstances without permission of the creator.
		It is illegal to circumvent encryption or scrambling technologies that protect copyrighted works.
		It is illegal to distribute tools and technologies designed to circumvent encryption devices.

QUESTION 18

In order for a copyright holder to collect money damages from a person who used copyrighted material, it must be proven that

		the infringement was intentional.
		the copyright holder sustained more than $500 in actual damages.
		the copyrighted material contained the copyright symbol, name of the copyright holder, and the year of copyright.
		the infringer actually copied the work.

QUESTION 19

A door-to-door salesperson knocks on Mary's door and convinces her to purchase the Wonder Vacuum for $500. Soon after the salesperson leaves, Mary begins to have second thoughts about the transaction. Which statement about the situation is correct?

		Mary agreed to purchase the vacuum, so she must honor the agreement.
		Mary can cancel the transaction at any time before midnight of the third business day thereafter.
		Mary must pay for the vacuum, but she can get a refund if she returns it to the manufacturer within 30 days.
		Mary can keep the vacuum without paying when it is delivered, as it was purchased in her home.

QUESTION 20

Monic, a college professor, makes 30 photocopies of a magazine article and passes the article out to her students. The students are assigned to read the article and write an opinion paper about it. Has Monic violated copyright law?

		Yes. Though the author will probably not enforce his or her rights under this situation, Monic has technically violated federal copyright law.
		Yes. Though educators have a right under the "fair use doctrine" to make limited use of copyrighted materials, Monic violated the law when she made photocopies of an entire article and distributed them to her students.
		No. Monic has acted within the fair use doctrine.
		No, as up to 50 photocopies of articles are always permissible.