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This Document Contains Chapters 7 to 8 Chapter 7 Criminal Law and Cyber Crime True/False 1. A crime can be committed only against persons. A. True B. False Answer: False 2. Criminal law spells out the duties that exist between persons or between citizens and their governments. A. True B. False Answer: False 3. Public officials prosecute criminal defendants. A. True B. False Answer: True 4. A criminal case must be proved beyond a reasonable doubt. A. True B. False Answer: True 5. One purpose of criminal sanctions is to deter others from committing similar crimes in the future. A. True B. False Answer: True 6. The crime of theft requires the taking of property, without regard to whether the perpetrator knew it belonged to another. A. True B. False Answer: False 7. Corporations, like persons, can be liable for crimes. A. True B. False Answer: True 8. Larceny relies on fear and force. A. True B. False Answer: False 9. Picking pockets is larceny. A. True B. False Answer: True 10. Counterfeiting is robbery. A. True B. False Answer: False 11. Falsifying public records is forgery. A. True B. False Answer: True 12. A bank employee stealing funds from a client is an example of embezzlement. A. True B. False Answer: True 13. Crimes occurring in a business context are popularly referred to as white-collar crime. A. True B. False Answer: True 14. Embezzlement can be committed only by physically taking property from the possession of another. A. True B. False Answer: False 15. It is not a crime to defraud the public through the use of ads on television. A. True B. False Answer: False 16. The crime of bribery occurs when the bribe is offered. A. True B. False Answer: True 17. Bribing foreign officials to obtain favorable business contracts is not a crime. A. True B. False Answer: False 18. Divestiture of a business interest is a possible penalty under RICO. A. True B. False Answer: True 19. In some states, misdemeanors are punishable by imprisonment for up to ten years. A. True B. False Answer: False 20. Felonies are punishable by imprisonment for more than a year or death. A. True B. False Answer: True 21. Someone suffering from a mental illness may be incapable of the state of mind to commit a crime. A. True B. False Answer: True 22. Ordinarily, “ignorance of the law” is a valid defense to criminal liability. A. True B. False Answer: False 23. Most crimes must be prosecuted within a certain number of years after the crimes occur. A. True B. False Answer: True 24. There is at least one circumstance in which a person cannot refuse to testify on Fifth Amendment grounds. A. True B. False Answer: True 25. Constitutional safeguards protect the rights of individuals against federal government actions. A. True B. False Answer: True 26. Under the Fourth Amendment, a general search warrant and a general search through a person’s belongings are permitted. A. True B. False Answer: False 27. A suspect cannot be tried twice in the same court for the same crime. A. True B. False Answer: True 28. Under the exclusionary rule, illegally obtained evidence may not be included in any criminal prosecution. A. True B. False Answer: True 29. The purpose of the exclusionary rule is to deter police from misconduct. A. True B. False Answer: True 30. Under the exclusionary rule, all evidence must be included in a criminal prosecution. A. True B. False Answer: False 31. Individuals who are arrested must be informed of certain constitutional rights. A. True B. False Answer: True 32. All persons who are arrested have the constitutional right to remain silent. A. True B. False Answer: True 33. Any criminal activity occurring via a computer in the virtual community of the Internet is a cyber crime. A. True B. False Answer: True 34. Identity theft occurs when a wrongdoer steals another’s form of identification and uses it to access the victim’s financial resources. A. True B. False Answer: True 35. A hacker is someone who uses one computer to break into another. A. True B. False Answer: True Multiple Choice 36. Mike is arrested at a warehouse in North Industrial Park and is charged with the crime of theft. Mike will be prosecuted by A. the owner of the warehouse. B. the owner of the property that Mike is charged with stealing. C. a public official. D. any third party unrelated to Mike, the property, or the crime. Answer: C 37. Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable, Ludwig must know A. Milo. B. Nadine. C. that the marimba is stolen and Ludwig must intend to keep it. D. what a marimba is. Answer: C 38. Mary enters a gas station and points a gun at the clerk. She then forces the clerk to open the cash register and give her all the money. Mary can be charged with A. robbery. B. forgery. C. larceny. D. embezzlement. Answer: A 39. William goes to Saddle Up Stables in the middle of the night when no one is around and takes five saddles. William’s crime is A. forgery. B. larceny. C. robbery. D. embezzlement. Answer: B 40. Mariah takes off her ring and places it on her desk while she works. Without her knowledge or consent, her coworker Nita picks up the ring, puts it on, and walks away. Nita has likely committed A. burglary. B. forgery. C. larceny. D. no crime. Answer: C 41. Scott, a State Bank employee, deposits into his account checks that are given to him by bank customers to deposit into their accounts. This is A. embezzlement. B. larceny. C. money laundering. D. no crime. Answer: B 42. Plato works for Quirky Squirters, Inc. During work hours, Plato “steals” time, space, and data on his employer’s computer system to start up his own business, Rowdy Drenchers. This is A. burglary. B. robbery. C. larceny. D. no crime. Answer: C 43. Susan is unhappy with the way her mother has made out her will. Susan has a lawyer draft a new will and then signs her mother’s name to it without her mother’s consent. Susan has committed A. larceny. B. no crime. C. robbery. D. forgery. Answer: D 44. Leah gains access to government records and alters certain dates and amounts in her favor. This is A. embezzlement. B. forgery. C. larceny. D. no crime. Answer: B 45. Ivan signs Jeb’s name, without his authorization, to the back of a check. This is A. no crime. B. forgery. C. larceny. D. larceny. Answer: B 46. Jake is charged with embezzlement. Embezzlement may be committed without A. a criminal act. B. a criminal intent. C. taking property from its owner. D. the use of force or fear. Answer: D 47. Briana, an employee of Cotillion Bank, is charged with embezzlement, which requires A. fraudulently appropriating another’s property. B. obtaining lawful possession of property. C. physically taking property from its owner. D. the use of force or fear. Answer: A 48. After Edie solicits clients to invest in a non existent business, she is charged with “mail fraud.” This requires, among other things, A. claiming that an item is “in the mail” when it is not. B. deceiving postal authorities as to the content of an item of mail. C. depositing items in the postal system without proper postage. D. mailing or causing someone else to mail a writing. Answer: D 49. Robert uses the Internet to defraud Prairie Valley Credit Union. He is found guilty of wire fraud. He can be punished by A. imprisonment for not more than one year. B. imprisonment for up to thirty years and fines of up to $1 million. C. fines for not more than $50,000. D. death. Answer: B 50. Mona offers Ned, a building inspector, $5,000 to overlook the violations in her new warehouse. Ned accepts the cash and overlooks the violations. Mona is charged with the crime of bribery. The crime occurred when A. Mona decided to offer the bribe. B. Mona offered the bribe. C. Ned accepted the bribe. D. Ned overlooked the violations. Answer: B 51. Dirk, an employee of Ergonomic Elevators, Inc., pays Ferbie, an employee of Ergonomics’ competitor G-Force Risers Company, for a secret G-Force pricing schedule. This is A. an effective marketing strategy. B. commercial bribery. C. creative legal bookkeeping. D. money laundering. Answer: B 52. Bruno is a businessperson with investments in legal and illegal operations. Bruno may be subject to penalties under RICO A. for making an unprofitable, but legal, investment. B. for the commission of any business fraud. C. only in a case involving a “racket.” D. only in a case involving organized crime. Answer: B 53. Jared is arrested and found guilty of a misdemeanor. His punishment will not include A. imprisonment for six months. B. a fine of $100. C. death. D. imprisonment for six months and a fine of $500. Answer: C 54. Megan is charged with jaywalking, which is classified as A. a misdemeanor. B. a felony. C. a petty offense. D. no crime. Answer: C 55. 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 A. any period of time. B. more than one year. C. more than six months. D. more than ten days. Answer: B 56. Vance points a gun at Workman and threatens to shoot him. Workman hits Vance, causing his death. Charged with homicide, Workman can successfully claim as a defense A. nothing. B. duress. C. entrapment. D. self-defense. Answer: D 57. 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 A. appreciate the wrongfulness of his conduct only. B. appreciate the wrongfulness of his conduct and obey the law. C. appreciate the wrongfulness of his conduct or obey the law. D. obey the law only. Answer: C 58. Davis points a gun at Eton, threatening to shoot him if he does not steal from his employer, Freddy’s Convenience Store, and give the stolen funds to Davis. Charged with theft, Eton can successfully claim, as a defense A. nothing. B. duress. C. entrapment. D. self-defense. Answer: B 59. Mae is granted immunity after she agrees to testify about a crime. Mae has an absolute privilege against self-incrimination and A. can be prosecuted only for a crime about which she agreed to testify. B. cannot be prosecuted for any crime. C. cannot refuse to testify on Fifth Amendment grounds. D. can refuse to testify on Fifth Amendment grounds. Answer: C 60. Maya, a police officer, wants to search the offices of Niles Corporation. Maya asks Judge Orion to issue a warrant. Under the Fourth Amendment, no warrants for a search or an arrest can be issued without A. double jeopardy. B. probable cause. C. reasonable doubt. D. immunity. Answer: B 61. Justin is charged with a crime. He insists that he should have an opportunity to object to the charges before a “fair, neutral decision maker.” No one can be deprived of “life, liberty, or property without due process of law” under the A. Second Amendment. B. Fourth Amendment. C. Fifth Amendment. D. Eighth Amendment. Answer: C 62. 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 A. certain Bayside records are excluded from subpoena. B. certain parties to a criminal action may be excluded from a trial. C. illegally obtained evidence must be excluded from a trial. D. persons who have biases that would prevent them from fairly deciding the case may be excluded from the jury. Answer: C 63. Jackson is accused of a crime. Jackson can refuse to provide information about his allegedly criminal activities A. if he suspects the information will be used to prosecute him. B. if the police do not promise to keep the information confidential. C. if the information is “fruit of the poisonous tree.” D. under no circumstances. Answer: A 64. 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 A. a trial by jury. B. punishment. C. question witnesses. D. remain silent. Answer: D 65. Gina sells “Bulk Up” steroids over the Internet. She is arrested and charged with the sale of a controlled substance. This is cyber crime, which is A. a new category of crime that is not related to older types of crime. B. a crime that occurs the virtual community of the Internet. C. a crime that is less real than the same crime in the physical world. D. no crime. Answer: B 66. Travis sends Suri what purports to be a link to an e-birthday card, but when she clicks on the link, software is downloaded to her computer to record her keystrokes and send the data to Travis. He uses the data to obtain her personal information and access her financial resources. This is A. identity theft. B. cyberterrorism. C. entrapment. D. no crime. Answer: A 67. Posing as Platinum Bank, Oswald e-mails Nadia, asking her to update her personal banking information through a link in the e-mail. She clicks on the link and types in the data, which Oswald promptly sells to Moe. This is A. hacking. B. identity theft. C. cyberterrorism. D. bribery. Answer: B 68. Farouk uses his computer to break into Global Financial Center’s computer. Farouk is a A. hacker. B. phisher. C. worm. D. virus. Answer: A 69. Via the Internet, Rocky sabotages the computer system of Quik Chik’n Company, a food manufacturer, to alter the levels of ingredients in the company’s products so that consumers of the food become ill. Rocky is a A. cyberterrorist. B. botnet. C. virus. D. worm. Answer: A 70. Patricia commits an act via e-mail against Othman Finance Company, a business in California, where the act is a cyber crime. Patricia resides in New York where the act is not a crime. Prosecution of Patricia in California involves questions of A. jurisdiction. B. “maximum contacts.” C. the immunity of Internet service providers. D. encryption. Answer: A Essay 71. Sophie is the president of Tasty Foods Corporation, a wholesale grocery company. An inspection by Uri, a government agent, uncovers unsanitary conditions in the company’s ware-house caused by Vic, a Tasty Foods employee. Will, a Tasty Foods vice president, assures Uri that the situation will be corrected, but a later inspection finds that the warehouse is still unsanitary. Sophie knows nothing about any of this. Can Tasty Foods be convicted of a crime in these circumstances? Can Sophie be held personally liable? Answer: The answer to both questions is yes. A corporation may be held liable for the crime of its employee if (1) the criminal act is within the scope of the employment and the purpose of the statute defining the act as a crime is to impose liability on the corporation, (2) the crime consists of a failure to perform a specific duty imposed on corporations by law, and (3) the crime was authorized by one of the corporation’s “high managerial agents.” Here, all of these elements exist. The unsanitary conditions in the warehouse are within the employee’s scope of employment, the crime consists of a failure to keep the warehouse clean, and the crime was authorized by a company vice president. As for the president’s personal liability, if she has the authority and the responsibility to deal with the situation, she can be held personally liable. A corporate officer must have the authority and the responsibility to deal with such situations. Personal liability is imposed in these circumstances, not because the corporate officer knew about the crime or intended it, but because the officer is in a “re-sponsible relationship” to the corporation and has the power to prevent the crime. Under this “responsible corporate officer” doctrine, a corporate officer can be held liable for an employee’s violations of the law. This li-ability may be imposed regardless of whether the officer participated in, directed, or knew about the violation. 72. An unknown individual launches a series of attacks against the Web sites of Prime Sales Corporation. The attacks significantly slow the sites, leading to $100 million in damage in terms of lost work time, lost revenue, site repair costs, and other expenses. The attacker does not intend to profit from the onslaught and in fact does not realize any financial benefit from the effects. How is this attack most likely orchestrated? Who is most likely to engage in this act—that is, whose habits and limitations are clearly suited to such conduct—and why? Answer: The perpetrator in this question likely committed the attack through hacking—using one computer to break into another. The hacker may have appropriated a large number of computers without their owners’ knowledge. Each computer might have become a bot, together constituting a botnet, through which the hacker could secretly install programs to forward transmissions to even more computers. The hacker might then have installed other malware, or other programs harmful to computers. This might have consisted of a worm, which could reproduce and transfer itself to other computers, or a virus, which could reproduce itself but could not transfer without being attached to an infected file. These programs might have been uploaded to Web sites based anywhere in the world. Chapter 8 Intellectual Property Rights True/False 1. The need to protect intellectual property is recognized in the Declaration of Independence. A. True B. False Answer: False 2. A patent and a copyright are examples of intellectual property, but a trademark is not an example of intellectual property. A. True B. False Answer: False 3. A beverage company that competes with Coca-Cola Company cannot call its products “Koke.” A. True B. False Answer: True 4. The 1995 Federal Trademark Dilution Act allowed trademark owners to bring suit in federal court for trademark dilution. A. True B. False Answer: True 5. A trademark can be diluted by the use of a similar mark. A. True B. False Answer: True 6. A trademark does not need to be registered to support a trademark infringement action. A. True B. False Answer: True 7. The states and the federal government provide for registration of trademarks. A. True B. False Answer: True 8. A fanciful use of ordinary words may be trademarked. A. True B. False Answer: True 9. A suggestive use of ordinary words may be trademarked. A. True B. False Answer: True 10. A generic term is not protected under trademark law unless it acquires a secondary meaning. A. True B. False Answer: False 11. A service mark distinguishes products used, or “put into service,” by the government. A. True B. False Answer: False 12. A certification mark distinguishes products approved, or “certified,” by the government. A. True B. False Answer: False 13. It is estimated that over 70 percent of the goods imported to the United States are counterfeit. A. True B. False Answer: False 14. Trade names have the same legal protection as trademarks. A. True B. False Answer: True 15. A trade name can be protected if it is unusual or fanciful. A. True B. False Answer: True 16. A license permits the use of another’s intellectual property for certain limited purposes. A. True B. False Answer: True 17. The owner of intellectual property may put restrictions on the use of the intellectual property in a license agreement. A. True B. False Answer: True 18. By using another’s trademark, a business could lead consumers to believe that its goods were made by the other business. A. True B. False Answer: True 19. To be patentable, an invention, discovery, or design must be novel, useful and not obvious in light of current technology. A. True B. False Answer: True 20. Patent infringement is a tort. A. True B. False Answer: True 21. Foreign firms cannot obtain U.S. patent protection on items that they sell in the United States. A. True B. False Answer: False 22. Copyright protection is automatic—registration is not required. A. True B. False Answer: True 23. It is possible to copyright an idea. A. True B. False Answer: False 24. A copyright owner must place a © or an ® on the work to have the work protected from copyright infringement. A. True B. False Answer: False 25. A copy does not need to be exactly the same as the original to infringe a copyright. A. True B. False Answer: True 26. A person who buys a copyrighted work cannot sell it to someone else. A. True B. False Answer: False 27. A marketing technique can be a trade secret. A. True B. False Answer: True 28. A customer list is not a trade secret. A. True B. False Answer: False 29. Pricing information is not a trade secret. A. True B. False Answer: False 30. Information that is not or cannot be protected under trademark, patent, or copyright law may be protected under the law of trade secrets. A. True B. False Answer: True 31. Anyone who writes a book has automatic international copyright protection. A. True B. False Answer: False 32. Each member country of the TRIPS agreement must include in its domestic laws intellectual property rights. A. True B. False Answer: True 33. The TRIPS agreement established standards for the international protection of intellectual property rights for computer programs. A. True B. False Answer: True 34. In the European Union, the period of royalty protection for musicians is seventy years. A. True B. False Answer: True 35. The Anti-Counterfeiting Trade Agreement applies to counterfeit physical goods and to pirated copyrighted works being distributed via the Internet. A. True B. False Answer: True Multiple Choice 36. Paula develops a new espresso machine that she names “Sure Shot.” She also writes an operating manual for the machine. Paula can obtain trademark protection for A. the espresso machine. B. the “newness” of the espresso machine. C. the name “Sure Shot.” D. the operating manual. Answer: C 37. Trademarks are protected from use on noncompeting goods by A. the Federal Trademark Dilution Act. B. the America Invents Act. C. the Anticybersquatting Consumer Protection Act. D. the Copyright Act. Answer: A 38. Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink under the name “CoCoCafe.” Darkroast Java, Inc., later markets a similar drink under the name “KoKoKafe.” This is most likely A. copyright infringement. B. patent infringement. C. trademark infringement. D. a theft of trade secrets. Answer: C 39. Bubbly Cola features Sparkly Cola’s trademark without its owner’s permission. Bubbly’s use of the mark is actionable provided A. consumers are confused. B. Bubbly’s use is intentional. C. Bubbly’s use reduces the value of Sparkly’s mark. D. Sparkly’s mark is registered. Answer: A 40. Li’l Canine Company (LCC) uses a trademark that neither LCC nor anyone else has registered with the government. Under federal trademark law, LCC A. can register the mark for protection. B. cannot register a mark that has been used in commerce. C. has committed trademark infringement. D. must put off registration until the mark is out of use for six months. Answer: A 41. In 2012, Online Marketing Corporation registers its trademark as provided by federal law. After the first renewal, this registration A. is renewable every ten years. B. is renewable every twenty years. C. runs for the life of the corporation plus seventy years. D. runs forever. Answer: A 42. From Southeast Asia, Tai Ltd. exports genuine trademarked goods to the United States. Tai also makes labels and packaging bearing another firm’s trademark, ships the labels to another location, and then affixes them to an inferior product to deceive buyers. Tai sells these goods to retailers who are unaware that the marks are counterfeit. Under the Stop Counterfeiting in Manufactured Goods Act, it is a crime to A. import genuine trademarked goods. B. traffic in counterfeit labels, stickers, and packaging. C. sell counterfeit versions of brand-name products in foreign countries. D. unknowingly use a counterfeit mark on goods. Answer: B 43. Billy opens a bicycle shop that sells an innovative new kind of bicycle. He decides to call the bicycles “Bicycles.” Billy extensively markets his product, has a high sales volume and becomes well known for selling Bicycles. The term Bicycle A. is automatically protected against trademark infringement. B. receives no protection against trademark infringement. C. can be registered as a trademark to obtain protection against trademark infringement. D. can be registered as a certification mark. Answer: B 44. Wendy works as a weather announcer for a TV station under the character name Weather Wendy. Wendy can register her name as a A. a certification mark. B. a collective mark. C. a service mark. D. a trade name. Answer: C 45. Trek Transport Company uses a mark associated with its name to distinguish its services from those of other trucking firms. This mark is A. a certification mark. B. a collective mark. C. a service mark. D. a trade name. Answer: C 46. Which of the following cannot be registered as a trade name? A. Peach Blossom, Certified Public Accountant B. Apples & Oranges, Investment Partnership C. Banana Republic Clothing, Inc. D. Strawberries Answer: D 47. Trevor’s operates The Spicy Chocolatier Café chain of restaurants. “The Spicy Chocolatier Café” is A. a certification mark. B. a collective mark. C. a service mark. D. a trade name. Answer: D 48. Mary Kate Corporation allows Ashley Company to use Mary Kate’s trademark as part of Ashley’s domain name. This is A. a license. B. a likelihood of consumer confusion. C. counterfeiting. D. trademark dilution. Answer: A 49. In its ads for athletic shoes, Sleek Feet LLC uses a trademark that is similar, but not identical, to the famous, registered mark of Trend Flash, Ltd. Sleek Feet’s unauthorized use of the mark constitutes trademark dilution, provided that A. consumers are confused. B. Sleek Feet and Trend Flash are competitors. C. Sleek Feet’s use is intentional. D. Sleek Feet’s use is likely to impair the distinctiveness of Trend Flash’s mark. Answer: A 50. Moving Advanced Technology Corporation can not claim a trademark in the phrase “Moving to the Market” if the phrase A. has a secondary meaning. B. is descriptive. C. is generic. D. is memorable. Answer: C 51. Ric designs a new tablet computer that he names “Sci Phi.” He also writes the operating manual to be included with each final product. Ric can obtain patent protection for A. the tablet computer. B. the “newness” of the tablet computer. C. the name. D. the operating manual. Answer: A 52. Ryan invents a pen that digitally “remembers” what is written or drawn with it. To obtain a patent for the pen, Ryan does not have to show that it is A. novel. B. marketable. C. useful. D. not obvious in light of current technology. Answer: B 53. Sights Unseen, Inc., (SUI) sells telescopes with distinctively designed lenses and mirrors. Later, without SUI’s permission, Telescopes Etc. Corporation begins to sell scopes with identical structures of lenses and mirrors. This is most likely A. copyright infringement. B. patent infringement. C. trademark infringement. D. not infringement. Answer: B 54. Zoe invents “All for One,” new business inventory control software, and applies for a patent. If Zoe is granted a patent, it will protect her product A. for ten years. B. for twenty years. C. for the life of the inventor plus seventy years. D. forever.. Answer: B 55. RiteMade Machinery, Inc., designs, makes, and sells a unique drill press. Steel Equipment Company copies the design without RiteMade’s permission. Steel’s conduct is actionable provided that A. consumers are confused. B. Steel’s conduct is intentional. C. Steel’s conduct reduces the value of RiteMade’s design. D. RiteMade’s design is patented. Answer: D 56. Stormclouds Inc. makes and markets its U.S. patented Tempest Tablet in the United States. Squalls Ltd., a Chinese firm, begins making and marketing the same product in China as Outburst Pad without Stormclouds’s permission. Squalls is A. not guilty of patent infringement. B. guilty of patent infringement. C. guilty of trademark infringement. D. in violation of the America Invents Act. Answer: A 57. 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 A. copyright infringement. B. patent infringement. C. trademark infringement. D. a theft of trade secrets. Answer: B 58. Riley invents a new valve to cap undersea oil spills. He names the valve “Great Catch.” He also writes the installation manual to be included with each valve. Riley can obtain copyright protection for A. the valve. B. the “newness” of the valve. C. the name. D. the installation manual. Answer: D 59. Sayers is very clever and spends lots of time creating new things. Which of the following is not copyrightable? A. A sculpture of Sayers’s dog B. A book about Sayers’s business successes C. A movie about Sayers’s life D. Sayers’s idea for a new way to play the guitar Answer: D 60. Go! is a handheld video game featuring races between imaginary creatures and vehicles. The graphics used in the game are protected by A. copyright law. B. patent law. C. trademark law. D. trade secrets law. Answer: A 61. Elvin publishes a book titled First Place, which includes a chapter from Frank’s copyrighted book Olympic Winners & Losers. Elvin’s use of the chapter is actionable provided A. consumers are confused. B. Elvin’s use is intentional. C. Elvin’s use reproduces Frank’s chapter exactly. D. Elvin does not have Frank’s permission. Answer: D 62. Mace copies Nick’s book, Mumbai Monsoon, in its entirety and sells it to Parkland Books, Inc., without Nick’s permission. Parkland publishes it under Mace’s name. This is A. copyright infringement. B. fair use. C. licensing. D. protected expression. Answer: A 63. Joey reproduces Mina’s copyrighted work Storm on the Mountain without paying royalties. Joey is most likely excepted from liability for copyright infringement under the “fair use” doctrine if A. Joey copies the entire work. B. Joey distributes the copies without charge to the public. C. Joey’s use has no effect on the market for Mina’s work. D. Joey’s use is for a commercial purpose. Answer: C 64. James buys a copy of the book Downpour. Later, after reading the book, James sells it to his sister. Under the first sale doctrine, James’s sale of the book is A. legal. B. legal only if the copyright has expired. C. legal only if he sells it for less than he paid for it. D. illegal. Answer: A 65. Creation Worx, Inc., develops, makes, and markets new computer programs for businesses and consumers. Generally, copyright protection extends to A. all aspects of the software. B. the “look and feel” of the software. C. those parts of the software that can be read by humans. D. all of the choices. Answer: C 66. The idea for “On Your Mark,” a computer game featuring world-class athletic competition in extreme and unique contests, is protected by A. copyright law. B. patent law. C. trademark law. D. trade secrets law. Answer: D 67. Ewa is Diamond Financial Planners’ most productive employee. She is dissatisfied with the commission structure, however, so she quits to work for Feldstar Investments, Inc. When she leaves Diamond’s employ, she takes her list of Diamond’s clients so that she can induce them to switch to Feldstar. Trade secrets law covers A. Diamond’s list of clients. B. Ewa’s performance. C. Feldstar’s commission structure. D. none of the choices. Answer: A 68. Caramello 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 A. consumers are confused. B. 4C’s conduct is intentional. C. 4C uses the list. D. 4C does not have 3S’s permission to use the list. Answer: D 69. Ross, an employee at Super Snowboard Company, is laid off. Before he exits Super’s building, he e-mails the company’s marketing campaign to Winter Sports Corporation, Super’s competitor, without permission. This is A. copyright infringement. B. patent infringement. C. trademark infringement. D. a theft of trade secrets. Answer: D 70. New Apps Company develops “Browser Lite” software, which speeds the display of graphics on Web sites. Browser “Lite” has the most copyright protection under A. the Berne Convention. B. the Paris Convention C. the TRIPS Agreement. D. the Madrid Protocol. Answer: A Essay 71. In 2005, Hawk Corporation begins making and selling electric motorcycles under the mark “Hawk.” Ten years later, Hawk.com, Inc., a different company selling medical equipment and supplies, begins to use “hawk” as part of its URL and registers it as a domain name. Can Hawk Corporation stop Hawk.com’s use of “hawk”? If so, what must the motorcycle-maker show? Answer: Hawk may be successful in obtaining a court order to stop the use of its name as part of another company’s URL and registered domain name. This use may constitute trademark dilution. Dilution occurs when a trade-mark is used, without permission, in a way that diminishes the distinctive quality of the mark. This cause of action does not require proof that consumers are likely to be confused by a connection between the un-authorized use and the mark. As in this problem, the products in-volved do not have to be similar. To succeed on a charge of dilution, how-ever, the owner must show that its mark was famous when the dilution took place. 72. College Copy Shop (CCS) compiles, copies, and sells reading materials to students. The compilations are prepared on the instructions of professors, who indicate which parts of which publications should be included for their students. The copied materials include texts published by Deep Topics, Inc. CCS does not obtain the permission of Deep Topics, or any of the other original publishers of the copied materials, and does not pay royalties on the sales of the compilations. Deep Topics and others file a suit against CCS, alleging infringement of their intellectual property rights. Which type of intellectual property is involved in this situation? What is CCS’s likely defense? How is a court most likely to rule? Explain. Answer: The intellectual property at issue in this situation is copyright—specifically, of course, the copyrights of the publishers of the materials that CCS copies and sells without permission. CCS is likely to assert the “fair use” doctrine in its defense. This doctrine allow exceptions to the general requirement that an owner’s permission be obtained before copyrighted material can be copied. CCS is likely to argue that its compilations are excepted because they are dedicated to “educational” uses. A court is most likely to conclude, however, that CCS’s copying and selling of the materials is not a fair use, because CCS profits from the sales, which undercut the potential market for the copyrighted publications from which the copies are made. In determining fair use, a court considers four factors: the purpose and character of the use, the nature of the copyrighted work, the amount and substantiality of the portion used in relation to the copyrighted work as a whole, and the effect of the use on the potential market for or value of the copyrighted work. In this situation, the fourth factor is most significant and supports the conclusion that CCS’s use of the materials is not a fair use. Test Bank for Essentials of the Legal Environment Today Roger LeRoy Miller 9781305262676

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