Business Law and Ethics Proctored Course Answer Key

Which of the following is an important purpose of intellectual property rights?  To encourage inventors to form monopolies  To prevent others from ever copying an inventor's product  To promote capitalism and make inventors rich  To advance the public good by encouraging invention CONCEPT Intellectual Property Report an issue with this question 2 Ursula allows a friend to borrow her copyrighted CD, knowing that her friend intends to make copies of the CD to sell in school. Select the correct classification for this example.  Direct copyright infringement  Legal use of a copyright license  Contributory infringement  Fair use CONCEPT Copyright Law Report an issue with this question 3 A government plane is __________.  tangible private property  tangible fungible public property  intangible private property  tangible public property CONCEPT Personal Property Report an issue with this question 4 Which of the following is true of agency relationships?  Agency relationships are created between a principal and an employee, who represents the principal to an agent.  Agency relationships require an exchange of consideration to be formed.  Legally binding agency relationships may be formed between a principal who is a minor and an agent, if the agent is a fully capable adult.  Agency relationships are created between a principal and an agent, who represents the principal to a third party. CONCEPT Introduction to Agency Law Report an issue with this question 5 Select the answer that best applies to the phrase "National Basketball Association."  This phrase likely cannot be trademarked.  This phrase is an example of a collective mark.  This phrase is an example of a service mark.  This phrase is an example of a certification mark. CONCEPT Trademarks Report an issue with this question 6 If ownership of Isaiah's home transfers to his sister upon his death, Isaiah has a __________ in his home.  leasehold interest  life estate interest  reversionary interest  possessory interest CONCEPT Real Property: Duties, Responsibilities, and Interests Report an issue with this question 7 Carla (principal) hires an agent to represent her business and find buyers for her artwork. At the same time, Carla continues to aggressively market her artwork and sells several pieces on her own. Is Carla in breach of her duty?  Yes, because Carla is "self-dealing" by continuing to sell pieces on her own.  No, because Carla may compete with her agent unless their contract states otherwise.  Yes, because Carla is violating her fiduciary duty to her agent.  No, because of the shop rights doctrine. CONCEPT Duties between Agent and Principal Report an issue with this question 8 Which of the following most clearly represents a lawful termination of employment?  A daycare center fires one of its teachers for wearing a hijab to work.  A car salesman quits his job in June after signing a contract to work at the dealership until the end of the year.  A landscaping company fires an employee who habitually leaves work earlier than he's supposed to. The employee has to leave early to pick up his child from school.  A newspaper publisher fires one of its reporters after the reporter exposes discrimination within the publishing company. CONCEPT Employment at Will Report an issue with this question 9 If a bailment is voluntary and benefits both the bailor and the bailee, what sort of responsibility does the bailee owe the bailor?  Extraordinary duty of care  The bailee has no responsibility in this case.  Minimum duty of care  Ordinary duty of care CONCEPT Bailment Report an issue with this question 10 Hallie hires an accountant to prepare and file her personal income tax return this year. Which type of agent relationship does this represent?  General agent  Agency coupled with an interest  Special agent  Subagent CONCEPT Types of Agents Report an issue with this question 11 Who can own property in the United States today?  All people and some nonhuman legal persons  All people, animals, and nonhuman legal persons  People and animals  Only people CONCEPT The Property System Report an issue with this question 12 Russ owns a construction company and manages 10 employees. He has an extensive employee manual that clearly lays out the company's policies and expectations for its workers. The manual expressly forbids drinking alcohol during the work day. Nevertheless, one of his roofers drinks a few beers at work and ends up injuring a passerby when he throws some tools down from the roof. The injured party sues. Is Russ liable for the tort?  Yes, Russ is vicariously liable according to the "zone of risk" test because the roofer was at the worksite performing his job, and his actions were foreseeable.  Yes, Russ is directly liable because he was the person who hired the roofer in the first place.  No, Russ would only be liable if the injured party were another employee.  No, Russ is not liable for the roofer's actions in this case because the employee manual forbade drinking on the job. CONCEPT Principal's Tort and Criminal Liability Report an issue with this question 13 A local shopkeeper has been doing business with Imogene for years. Imogene is a caretaker for an elderly woman in town, and she is authorized to purchase groceries and other goods in the store on the elderly woman's account. One day, a man named Andrew comes to the store and claims to be the elderly woman's new caretaker. He charges groceries to her account and leaves. The elderly woman later refuses to pay those charges, asserting that she doesn't know an Andrew. Is Andrew personally liable for the charges?  Yes, because he did not have the authority to make a contract on the elderly woman's behalf.  No, because Andrew was only a partially disclosed agent.  No, because the shopkeeper should have known that Andrew was not a legitimate agent.  Yes, because an agent is almost always responsible for a contract formed on behalf of a principal. CONCEPT Agent's Personal Liability for Torts and Contracts Report an issue with this question 14 Jenna has been employed as Rashid's personal assistant for five years. Her job description is vague, but she helps him with many aspects of his day to day life. Jenna knows he likes art, so every year she attends a local art auction and purchases a painting on Rashid's behalf. This year, she buys a painting that is twice as expensive as usual. Is Rashid responsible for the full price of the painting?  Yes, due to apparent authority.  Yes, due to implied authority.  No, Rashid is not liable.  Yes, due to express authority. CONCEPT Principal's Contract Liability Report an issue with this question 15 Trudy is an aspiring chef. She takes a job in a famous restaurant in order to learn the head chef's highly secretive technique for making pasta, which people from all over the country come to eat. After quitting her job, Trudy opens her own restaurant and makes pasta using the same technique. She advertises this fact in order to generate business. Does Trudy's conduct violate trade secret law?  Yes, because Trudy used a trade secret without permission from the secret’s owner.  No, because the head chef was not able to keep her technique a secret from Trudy.  Yes, because the method by which Trudy discovered the trade secret is illegal according to trade secret law.  No, because Trudy was upfront about the fact that she was using the trade secret. CONCEPT Trade Secrets Report an issue with this question 16 A new and useful idea __________.  can be patented without any other qualifications  can be patented if it is completely original  can be patented if it holds potential commercial value  cannot itself be patented CONCEPT Patents Report an issue with this question 17 Select the true statement regarding real property purchases.  All real property transfers must involve a warranty deed.  A contract for the purchase of real property may be either verbal or written.  A purchase of real property includes the acquisition of fixtures, if such fixtures exist and are not excluded by contract.  By law, all deeds must be recorded at the end of real property sales.