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BUS 6444 > Test #3 > Flashcards

Test #3 Flashcards

(105 cards)

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1
Q

What is the main test for trademark infringement?

A

The “likelihood of confusion” test, often assessed using the Polaroid test​

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2
Q

Who was Sherry Hunt?

A

Sherry Hunt was the vice president and chief underwriter at CitiMortgage who uncovered significant mortgage defects and fraud at Citibank.

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3
Q

What are the three main goals of criminal law?

A

Deterrence, removal of dangerous individuals from society, and rehabilitation​

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4
Q

What is “delegated underwriting,” and how did it lead to issues at CitiMortgage?

A

Delegated underwriting allowed correspondent lenders to approve loans with minimal Citi oversight, leading to a high volume of defective loans being purchased​

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5
Q

What does UTSA stand for?

A

Uniform Trade Secrets Act

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6
Q

What does “actus reus” refer to in criminal law?

A

The physical act or omission that constitutes part of a criminal offense​

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7
Q

What are the four exceptions to the exclusionary rule?

A

Independent source, inevitable discovery, intervening act of free will, and attenuation​

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8
Q

What is the Anti-cybersquatting Consumer Protection Act (ACPA)?

A

A law preventing individuals from registering domain names of well-known brands with bad faith intent to profit.

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9
Q

When a trademark, due to its popularity or significance, has become the generic name for a general class of product or service, usually against the intentions of the trademark’s holder.
Can lose IP rights

A

Genocide

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10
Q

What is Mens Rea in criminal law?

A

It refers to the “guilty mind,” indicating the defendant’s intention or knowledge of wrongdoing, which is a component of criminal liability.

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11
Q

What role did Richard Bowen play in the CitiMortgage case?

A

Richard Bowen was the business chief underwriter who identified severe defects in Citi’s mortgage processes and reported them to upper management, including Robert Rubin​

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12
Q

Information that provides a business advantage, kept confidential through various protections to maintain secrecy.

A

trade secret

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13
Q

What was the defect rate in CitiMortgage loans, according to Hunt and Bowen?

A

The defect rate in CitiMortgage loans ranged between 60% and 80%, far above the industry standard of 5%​

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14
Q

What is the purpose of trademark registration with the USPTO?

A

To secure nationwide protection for a mark, making it easier to enforce exclusive rights​

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15
Q

What are the key components of intellectual property law?

A

Protections for trademarks, patents, copyrights, and trade secrets.

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16
Q

What is the purpose of the exclusionary rule?

A

To prevent use of evidence obtained through violations of constitutional rights​

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17
Q

What was Bowen’s primary complaint in his email to Robert Rubin?

A

Bowen expressed concerns over internal control breakdowns and significant financial risks due to high volumes of defective loans​

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18
Q

Describe the “fruit of the poisonous tree” doctrine.

A

Evidence obtained illegally must be excluded from court​

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19
Q

What is “trade dress”?

A

It involves characteristics like shape, color, or packaging associated with a product, which can be trademark-protected if linked exclusively to its source.

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20
Q

What is the Plain View Doctrine?

A

Allows evidence seen in plain sight by an officer in a lawful position to be used without it violating the 4th Amendment.

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21
Q

What is the significance of the Lanham Act?

A

It prevents unauthorized use of trademarks that could confuse consumers​

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22
Q

What is the significance of the case Braswell v. United States?

A

It held that employees acting as records custodians for a corporation are not entitled to 5th Amendment protections, as they represent the corporation, not themselves.

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23
Q

What is the burden of proof in a criminal case?

A

The government must prove the case “beyond a reasonable doubt.”

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24
Q

What is “genericide” in trademark law?

A

When a trademark becomes generic and loses protection, as seen with terms like “aspirin”​

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25
What is the burden of proof in criminal vs. civil cases?
Criminal cases require proof beyond a reasonable doubt, while civil cases require a preponderance of evidence​
26
Criminal penalties for theft or misappropriation of trade secrets​
the Economic Espionage Act of 1996 provide
27
What is the role of "mens rea" in criminal liability?
It denotes the "guilty mind," or the intent necessary to commit a crime, which varies by offense​
28
What does ACPA stand for?
Anti-cybersquatting Consumer Protection Act
29
What does the 4th Amendment protect against?
Unreasonable search and seizure.
30
What is the 5th Amendment's protection related to self-incrimination?
It prevents individuals from being compelled to testify against themselves in criminal cases.
31
How does criminal law differ from civil law?
Criminal law protects society through punishment, while civil law compensates parties for damages due to another's conduct.
32
What is "embezzlement"?
The fraudulent conversion of another's property by someone in lawful possession, often involving misuse beyond given authority.
33
What is a Ponzi Scheme?
A fraudulent investment operation that pays returns to investors from new investors' funds rather than profits.
34
What impact did Citi’s actions have on the financial system?
Citi’s sale of defective mortgages contributed to the financial crisis, leading to a $45 billion government bailout and a $301 billion guarantee of toxic assets by the U.S. Treasury​
35
What was the response from Citi's general counsel when Bowen reported his concerns?
Citi’s general counsel acknowledged receiving Bowen’s report but told him not to contact them further, and they did not follow up​
36
What is the Model Penal Code
A code adopted by the American Law Institute in 1962, which serves as a basis for criminal law in nearly two-thirds of U.S. states.
37
A formal charge or accusation of a serious crime, issued by a grand jury if enough evidence exists​
Indictment
38
What is the difference between trademarks and service marks?
Trademarks identify products, while service marks identify services, such as hotel or transportation brands​
39
What triggered Sherry Hunt’s whistle-blowing actions?
Hunt’s discovery of fraudulent mortgage practices at Citi, combined with her supervisors' threats to lower defect reports, motivated her to act as a whistle-blower​
40
What protections does the Economic Espionage Act offer?
Criminalizes trade secret theft, especially in cases involving economic espionage​
41
What does MPC stand for?
Model Penal Code
42
What were the “two flows” of CitiMortgage’s correspondent business channel?
The "Underwritten Flow" required Citi to review each mortgage file before purchase, while the "Delegated Flow" allowed correspondent lenders to approve loans with only sample checks by Citi​
43
What does the Foreign Corrupt Practices Act (FCPA) prohibit?
Corporate bribery of foreign officials in business transactions.
44
What were the consequences for Citi of the defective loans sold to GSEs?
Citi faced potential repurchase demands from GSEs for billions of dollars in defective loans, which contributed to its financial instability​
45
Distinctive words, symbols, or phrases identifying a product's source and distinguishing it from others​
trademarks
46
The weakening of a famous mark's distinctiveness through unauthorized use, even without direct competition
trademark dilution
47
What is "fair use" in copyright law?
A defense allowing limited use of copyrighted material without permission, based on purpose, nature, amount used, and market effect.
48
What is probable cause?
Reasonable basis for believing a crime has been committed, required for searches and arrests without warrants​
49
How does one obtain trademark rights?
By being the first to use the mark in commerce or by registering it with the U.S. Patent and Trademark Office​
50
What is "vicarious infringement" in copyright law?
Liability based on agency law, where a principal is liable for an infringing agent acting on their behalf.
51
What is criminal law?
Law designed to prevent harm to society by defining boundaries of behavior and prescribing penalties for violations.
52
Why did Hunt face difficulties reporting fraud through traditional channels?
Hunt’s reports were ignored by Citi’s fraud prevention and investigation group, and anonymous reports to HUD and the FBI went unanswered​
53
What does probable cause mean in criminal law?
It is a reasonable basis for believing a crime may have been committed, allowing for an arrest or search.
54
Allows law enforcement to use evidence in plain sight without a warrant​
plain view doctrine
55
What is "patent infringement"?
Unauthorized making, using, or selling of a patented invention or inducing others to do so.
56
What are the two parts of criminal liability?
The actus reus (the act) and mens rea (the intent)​
57
What is the legal significance of the case Miranda v. Arizona?
Established that suspects must be informed of their rights to avoid presumed coercion in custodial interrogations.
58
What are “reps and warrants” in the context of mortgage lending?
“Reps and warrants” refer to Citi’s representation and warranty to GSEs (like Fannie Mae and Freddie Mac) that the mortgages sold met Citi policy and were compliant​
59
What are the three elements for obtaining copyright protection?
Originality, creativity, and fixation in a durable medium.
60
What factors determine if information qualifies as a trade secret?
Factors include secrecy efforts, value to competitors, and the information's economic advantage​
61
A model developed by the American Law Institute in 1962 to standardize criminal law across U.S. states​
the Model Penal Code (MPC).
62
Define "Racketeer Influenced and Corrupt Organizations Act (RICO)."
A law to prosecute organized crime, including activities like wire fraud and securities fraud.
63
Define "trademark."
A word, symbol, or phrase that identifies and distinguishes a seller's products from others.
64
What was the significance of the Dodd-Frank Whistleblower Program for Hunt?
The Dodd-Frank Act’s Whistleblower Program provided Hunt with the means to report Citi’s misconduct to authorities while offering potential protections​
65
How do state and federal criminal laws coexist in the U.S.?
Each state has its own criminal laws, with federal criminal laws overlapping but not preempting unless specified.
66
What was the outcome of Hunt’s whistle-blowing under the Dodd-Frank Act?
Hunt filed a lawsuit under Dodd-Frank, and the U.S. government ultimately pursued a $158 million settlement with Citi for false claims and defective loans​
67
What is "mitigating circumstances"?
Factors that don’t excuse a crime but may reduce the sentence, such as lack of criminal history or mental illness​
68
What does FCPA mean?
Foreign Corrupt Practices Act
69
What constitutes criminal fraud?
A false representation concerning a material fact, reliance by another party, and resulting damages.
70
Registering domain names of established brands to sell them at high prices, regulated under the Anti-Cybersquatting Consumer Protection Act
Cybersquatting
71
What is the Sarbanes-Oxley Act's impact on corporate crime?
It imposes criminal liability for falsifying financial disclosures, with up to 20 years of incarceration for document destruction.
72
Legal protection for original creative works, granting exclusive rights to copy, distribute, and display the work​
copyright
73
What principle allows individuals to know the charges against them?
The principle of legality.
74
What is "culpability" in criminal law?
The level of blame assigned to a defendant based on intent and state of mind, impacting the severity of punishment
75
How does the "speedy trial" right protect defendants?
It prevents prolonged detention by ensuring trial occurs within a specific timeframe, typically under a year​
76
How did the culture at CitiMortgage contribute to ethical problems?
CitiMortgage’s emphasis on market share and loan volume over quality led to a culture where ethical issues were often dismissed to meet performance goals​
77
What cultural issues did Hunt observe at CitiMortgage?
Hunt noted a “yes” culture that prioritized sales over quality, frequent management changes, and a lack of transparency and accountability​
78
What are trade secrets protected by?
State statutes, the Uniform Trade Secrets Act, and in cases of theft, the Economic Espionage Act.
79
What was the “quality rebuttal committee” and why was it problematic?
Created to counter Hunt’s defect findings, the committee often approved defective loans to meet defect rate targets, undermining quality control efforts​
80
What did Hunt discover about FHA-insured loans at Citi?
Hunt found that many FHA-insured loans, which were supposed to be defect-free, had significant fraud issues that went unaddressed​
81
Why did Sherry Hunt start documenting her findings outside of Citi?
After being ignored by her superiors, Hunt started documenting issues on her personal computer to have a record of her findings and experiences​
82
What is the purpose of a grand jury?
To review evidence and determine if there's probable cause to proceed with a criminal case​
83
Why was Bowen’s testimony to Congress censored?
Under pressure from Citigroup’s lawyers, the Financial Crisis Inquiry Commission removed parts of Bowen’s testimony, including details about internal control issues​
84
What are the protections for copyrighted works?
Copyright law grants protection if a work is original, creative, and fixed in a tangible medium.
85
What is "conspiracy" in criminal law?
A crime committed upon agreement to achieve an illegal objective, requiring intent but not necessarily an actual act.
86
What does RICO stand for?
Racketeer Influenced and Corrupt Organizations Act
87
What does "business crime" liability often require?
A criminal act within the scope of employment or failure to perform a legal duty, such as reporting disclosures.
88
What is the "Polaroid Test"?
A set of eight factors used by courts to assess the likelihood of confusion in trademark infringement cases.
89
Protection for the visual appearance of a product or packaging, like a product's shape or color​
trade dress
90
What is the "first-to-use" rule in trademark law?
The first to use a mark in commerce has priority over later users, even if it’s not registered​
91
What did the “quality rebuttal committee” do?
The quality rebuttal committee was created to review and possibly refute defects identified by quality control, often overruling Hunt's team’s findings to lower reported defect rates​
92
What is the Exclusionary Rule?
It prohibits using evidence in a trial that was obtained in violation of a defendant's constitutional rights.
93
How did CitiMortgage incentivize loan approvals?
Employee bonuses and pay were tied to the percentage of loans approved, creating pressure to approve loans regardless of quality​
94
How did management changes affect CitiMortgage's operations?
Frequent changes in upper management created instability and a lack of accountability, as executives unfamiliar with the mortgage process took on critical roles​
95
What constitutes "misappropriation" of a trade secret?
Acquisition, use, or disclosure of a trade secret without consent, often through improper means​
96
What major law did Hunt study to understand her options for reporting fraud?
Hunt studied the Dodd-Frank Wall Street Reform and Consumer Protection Act, which offered whistle-blower protections​
97
What are the two parts of a crime?
Actus reus (the physical act) and Mens rea (the mental intent).
98
What is the Uniform Trade Secrets Act (UTSA)?
A standardized law defining trade secrets and providing criteria for protection​
99
Explain the Miranda rights in custodial interrogations.
Suspects must be informed of their rights to avoid self-incrimination during police questioning​
100
What types of patents exist?
Utility, design, and plant patents, each covering different types of inventions.
101
Define "self-defense" as a legal defense.
A defense used when a defendant reasonably feared harm and used necessary force to protect themselves or others​
102
What were some examples of loan defects found by Hunt’s team?
Defects included missing tax forms, unsigned documents, inflated borrower income, and fraudulent loan applications claiming multiple properties as primary residences​
103
What is the duration of copyright protection for a sole author?
70 years from the author's death.
104
Why might a company choose a trade secret over a patent?
Trade secrets provide protection without expiration, as long as the information remains confidential​
105
What is the "non-obviousness" requirement for patents?
The invention must be more than obvious to someone skilled in the field, based on publicly available knowledge.

BUS 6444 (2 decks)

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