Test 2

Question 1

Chocolate Chip Cookie Corporation (4C) obtains, and gives its employees, a list of the customers of Sugar & Spice Sales, Inc. (3S). Under the law that applies to trade secrets, 4C’s conduct is actionable provided:

Answer 1

4C does not have 3S’s permission to use the list.

Question 2

Li’l Canine Company (LCC) uses a trademark that neither LCC nor anyone else has registered with the government. Under federal trademark law, LCC:

Answer 2

can register the mark for protection

Question 3

Cathy uses, on her new recording Drive By, the exact note-for-note melody of a song written by Earl without his permission. This is:

Answer 3

copyright infringement.

Question 4

Home Products Company and House & Yard, Inc., use the mark “Good Housekeeping Seal of Approval” to certify the quality of their products. Home Products and House & Yard are not in business together and do not own this mark. This mark is:

Answer 4

a certification mark.

Question 5

The process behind the production of “Fast Pace,” a racecar video game, is protected by:

Answer 5

trade secrets law.

Question 6

E-Shopping Corporation inserts Fiesta Mall, Inc.’s trademark as a meta tag in E-Shopping’s Web site’s key-words field without Fiesta’s permission in a manner that suggests Fiesta authorized the use. This is:

Answer 6

trademark infringement.

Question 7

Bubbly Cola features Sparkly Cola’s trademark without its owner’s permission. Bubbly’s use of the mark is against the law provided:

Answer 7

consumers are confused.

Question 8

Fiona invents a new deep-sea fishing net, which she names “Great Catch.” She also writes the operating manual to be included with each net. Fiona could obtain copyright protection for:

Answer 8

the operating manual.

Question 9

Copy Products, Inc., uses, in its ads, a trademark that is similar, but not identical, to the famous, registered mark of Imitated Goods, Inc. Copy’s unauthorized use of the mark constitutes trademark dilution provided:

Answer 9

Copy’s use reduces the value of Imitated’s mark.

Question 10

The graphics used in “Go!,” a handheld video game featuring racecars, are protected by:

Answer 10

copyright law.

Question 11

Gas Up, Inc., designs, makes, and sells a fuel injection system that copies Hybrid Corporation’s design without Hybrid’s permission. This is most likely:

Answer 11

patent infringement.

Question 12

New Apps Company develops “Browser Lite,” software to speed the display of graphics on Web sites. Browser Lite has the most copyright protection under:

Answer 12

the TRIPS Agreement.

Question 13

Trek Transport Company uses a mark associated with its name to distinguish its services from those of other trucking firms. This mark is:

Answer 13

a service mark.

Question 14

Ellen publishes a book titled First Place, which includes a chapter from Frank’s copyrighted book Great Racecar Drivers. Ellen’s use of the chapter is actionable provided:

Answer 14

Ellen does not have Frank’s permission.

Question 15

In 2010, Sara writes Terror at the Track, a novel about racecar driving. Sara does not register the work with the appropriate government office. Under federal copyright law, Sara’s work is:

Answer 15

protected for the life of the author plus seventy years.

Question 16

Joey reproduces Mina’s copyrighted work without paying royalties. Joey is most likely excepted from liability for copyright infringement under the “fair use” doctrine if:

Answer 16

Joey’s use has no effect on the market for Mina’s work.

Question 17

Ric designs a new computer hard drive, which he names “Sci Phi.” He also writes the operating manual to be included with each final product. Ric could obtain patent protection for:

Answer 17

the hard drive.

Question 18

Diamond Financial Planners employs Ella, who is the firm’s most productive performer. Ella, dissatisfied with the commission structure, quits to work for Feldstar Investments, Inc. She takes her list of Diamond clients to induce them to switch to Feldstar. Trade secrets law covers:

Answer 18

Diamond’s list of clients.

Question 19

Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink under the name “CoCoCafe.” Darkroast Java, Inc., later markets a similar tasting drink under the name “KoKoKafe.” This is most likely:

Answer 19

trademark infringement.

Question 20

Modern Clothing, Inc., and National Denim Corporation use the mark “Made by Members of the U.S. Textile Workers Union” on the tags of their products to indicate the participation of the union in the manufacture. Modern and National are not in business together and do not own this mark. This mark is:

Answer 20

a collective mark.

Question 21

Domino causes a disturbance at El Nino Cafe. He is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punishable by:

Answer 21

imprisonment up to 12 months.

Question 22

Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable, Ludwig must know:

Answer 22

that the marimba is stolen.

Question 23

Mary, who is charged with a crime, claims that Nick, a government agent, entrapped her. For entrapment to be a valid defense:

Answer 23

all of the choices.

Question 24

Jake is charged with embezzlement. Embezzlement is not robbery because embezzlement may be committed without:

Answer 24

the use of force or fear.

Question 25

Alan, the president of Bayside Investments, Inc., and Colin, Bayside’s accountant, are charged with a crime, after the police search Bayside’s offices. Under the exclusionary rule:

Answer 25

illegally obtained evidence must be excluded from a trial

Question 26

Herb, a computer programmer for Inventory Control Corporation, is arrested in his employer’s parking lot on suspicion of larceny. Herb must be informed of his right to:

Answer 26

remain silent.

Question 27

Bruno is a businessperson with investments in legal and illegal operations. Bruno may be subject to penalties under RICO:

Answer 27

for the commission of any business fraud.

Question 28

Vance points a gun at Workman, threatening to shoot him. Workman hits Vance, causing his death. Charged with homicide, Workman can successfully claim as a defense:

Answer 28

self-defense.

Question 29

Vladimir is a “payday” lender charged with filing false claims in bankruptcy proceedings against his customer-debtors. The standard of proof to find a defendant who has been charged with a crime guilty is:

Answer 29

beyond a reasonable doubt.

Question 30

Page points a knife at Ray’s daughter, threatening to hold her hostage and “cut” her unless Ray takes a certain file from Skelter Supplies Corporation, his employer. Charged with theft, Ray can successfully claim as a defense:

Answer 30

duress.

Question 31

Mona offers Ned, a building inspector, money to overlook the violations in her new warehouse. Ned accepts the money and overlooks the violations. Mona is charged with the crime of bribery. The crime occurred when:

Answer 31

Mona offered the bribe.

Question 32

Yvon is charged with the crime of theft for taking Zach’s briefcase, which Yvon mistakenly thought was hers. A mistake of fact is a proper defense:

Answer 32

if the mistake negates the mental state necessary to commit a crime.

Question 33

The police arrest Lou, who confesses to a crime. Later, Lou refutes the confession and demands a trial, at which witnesses testify they saw him commit the crime. Lou is convicted and sentenced. The U.S. Constitution provides safeguards against all of the following except:

Answer 33

punishment

Question 34

Briana, an employee of Cotillion Bank, is charged with embezzlement, which requires:

Answer 34

fraudulently appropriating another’s property.

Question 35

Smitty, driving while intoxicated, causes a car accident that results in the death of Tiffany. Smitty is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for:

Answer 35

more than one year.

Question 36

Evan is charged with a crime. Almost all federal courts and some state courts would not hold Evan liable if, at the time of the offense, as a result of a mental disease or defect, Evan lacked substantial capacity to:

Answer 36

appreciate the wrongfulness of his conduct or obey the law.

Question 37

Ira signs Jill’s name, without her authorization, on the back of a check made out to her. This is:

Answer 37

forgery.

Question 38

Jeri is indicted. Before she is arrested, she confesses to the crime in a conversation with Kelly, the arresting officer. Kelly then arrests Jeri and advises her of the right to counsel. Later, Jeri claims that her statement should be excluded as evidence from her trial. The statement will most likely be:

Answer 38

excluded because it was elicited before Jeri was advised of her rights.

Question 39

Biff wrongfully takes an unopened carton from a Cold Storage Warehouse loading dock, puts the carton in his car, and drives away. This is:

Answer 39

larceny

Question 40

Rick manages an illegal gambling operation in his Sushi Bar & Grill. Rick reports the profits of the gambling operation as income from Sushi’s legitimate activities on its tax returns. This is:

Answer 40

money laundering

Question 41

Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate’s decision makers can predict whether a given business action would be legal in:

Answer 41

many situations

Question 42

In business deals, Felipe, the chief executive officer of Glazed Donuts, Inc., follows duty-based ethical standards. These are most likely derived from:

Answer 42

philosophical reasoning

Question 43

Lyle, vice-president of sales for Mi-T Electric, Inc., adheres to Judeo-Christian religious ethical standards. With respect to their application, these standards are usually:

Answer 43

absolute

Question 44

Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve the extent to which Peak & Vale has:

Answer 44

an ethical duty beyond those duties mandated by law

Question 45

Made4U Goods, Inc., asks its employees, many of whom are members of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require:

Answer 45

the acquiring of the means of production by workers.

Question 46

Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to ensure that Flo-Thru’s activities are legal and ethical. The best course for Eden and Flo-Thru is to act in:

Answer 46

good faith

Question 47

Mariah works in the public relations department of New Trends Sales Company. Her job includes portraying New Trends’s activities in their best light. In this context, ethics consist of:

Answer 47

the same moral principles that apply to non-business activities.

Question 48

Solid Tool Company’s decision makers view a particular risk in the use of Solid’s product as open and obvious. Continuing to market the product without telling consumers of the risk could be justified from a perspective of:

Answer 48

utilitarian ethics.

Question 49

Chuckie, president of DrinkUp Fresh Beverages, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it

Answer 49

tends to justify human costs that many find unacceptable

Question 50

In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies his belief that all persons have fundamental rights. This is

Answer 50

the principle of rights

Question 51

Ethical standards would most likely be considered violated if Retail Mart Corporation deals with a company in a developing nation that:

Answer 51

exploits its workers

Question 52

In studying the legal environment of business, Professor Dooley’s students also review ethics in a business context. Ethics includes the study of what constitutes:

Answer 52

fair or just behavior

Question 53

In deciding questions of corporate social responsibility, Valley Disposal & Recycling, Inc., is concerned with:

Answer 53

all of the choices

Question 54

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its:

Answer 54

operators, owners, suppliers, the community, or society as a whole.

Question 55

Applied Business Corporation makes and markets its products nationwide. Under the stakeholder approach, to be considered socially responsible when making a business decision, Applied must take into account the needs of:

Answer 55

its employees, owners, consumers, the community, and society.

Question 56

DeLouse Plastics Corporation pays its executives an excessive amount relative to other employees and to what executives at competitive companies are paid. This is most likely to be challenged as:

Answer 56

unethical only.

Question 57

In making decisions for United Merchandising Company, Vance uses a cost-benefit analysis. This is part of:

Answer 57

utilitarianism.

Question 58

Kennedy Capital Corporation provides other firms with funds to expand operations. If Kenney strictly complies with existing laws, the firm will:

Answer 58

fulfill some business ethics obligations

Question 59

Bob, research manager for CornAgri Products, Inc., applies utilitarian ethics to determine that an action is morally correct when it produces the greatest good for:

Answer 59

The most people

Question 60

Flexo Trucking Company transports hazardous waste. Garn is a Flexo driver, whom the company knows drives longer hours than federal regulations permit. One night, Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill City’s water source, forcing the residents to move away. Flexo acted unethically because:

Answer 60

Flexo showed reckless disregard for Hill City’s residents and others.