Law Expert Answers & Study Resources

6. Which of the following is NOT one of the reasons why a company must notify the Consumer Product Safety Commission (CPSC) about its product? a. The product has a defect that creates a substantial risk of injury to the public. b. The product was not pre-registered with the CPSC before going.

1. Under the FTC’s Telemarketing Sales Rule, which of the following is NOT one of the things telemarketers must disclose? a. The total cost of the product. b. The quantity of goods being sold. c. Whether the sale is final or non-refundable. d. The telemarketer must disclose all of the above information. 2. The Telephone.

Essay Questions 1. Explain the four-factor Central Hudson test.     .

2. Lisa is flipping through the Sunday paper when she sees the following advertisement: “For sale: 5 Sony stereos, Model 10b-5, only $250. 00, first come first served. ” Lisa is the first person at the store that morning but the store refuses to sell the stereos, saying that the.

9. Farrar Products Co. is a packer and shipper of produce. Farrar ordered 20,000 produce boxes from Wilson Paper Co. According to the contract, the boxes were each to hold between 20 and 30 pounds of produce for shipping. When the boxes arrived at Farrar’s packing plant, Farrar discovered that.

ESSAY QUESTIONS 1. The purpose of the federal antitrust laws is to control private economic power by promoting and encouraging competition. Explain why competition is valued. 2. Billy Bob owns and operates Billy Bob’s Towing and Impounding in Tulsa, Oklahoma. Billy Bob is not the only towing operation in town. Across town,.

3. After years of careful research, you have developed a wondrous new product – a clear sealant which, when sprayed over small chips in a car’s finish, will cover the chips, seal the finish, and prevent rusting. Unlike other sealants in the market, your product will spray on in very.

5. Customer Advocate, a national magazine, tested three leading brands of bacon in order to find out which was lowest in nitrates and other suspected carcinogens. It published the results, stating that the bacon “lowest in nitrates” was BestBacon. The report went on to state that the differences between the.

5. Cajun King, Inc. is a nation-wide fast food restaurant, with several hundred franchisees. Its standard franchise agreement requires franchisees to purchase only “approved menu items,” and the only approved sugar-sweetened cola is RC Cola. Cajun King neither sells RC Cola to its franchisees nor receives any rate or commission on.

a. Business format franchise. b. Uniform business franchise. c. Product and trade name franchise. d. “Cookie cutter” franchise. 2. Which of the following is NOT a factor that the federal Franchise Disclosure Rule requires in order to show a franchise relationship? a. Assistance to or control over the franchisee’s business. b. Use of a trade.

11. Under the reply doctrine, if both contracting parties are merchants, a written confirmation that indicates a contract has been formed and that is signed by the sender will be enforceable against the recipient unless the recipient objects in writing within how many days? a. 10 days. b. 15 business days. c. 15.

3. Explain the contract concept of consideration. 4. On April 10, Call-Mart sends Buffy a purchase order for 1000 Buffy BMX bikes at $75 a piece. Call-Mart’s purchase order includes terms on the back of the form that the seller warrants that the goods are free of defects and are merchantable..

6. Which federal government entity regulates deceptive or unfair advertising? a. The Federal Bureau of Investigation. b. The Federal Trade Commission. c. The Department of Justice. d. The Department of Commerce. e. The Federal Communication Commission. 7. The FTC Act requires that advertising meet three requirements. Which of the following is NOT one of the three.

6. In order to get around gift tax laws, your rich Uncle Michael agrees to sell you his house in exchange for a peppercorn. You readily agree, but Uncle Michael changes his mind and transfers ownership of the house to a trust he created for his favorite chimpanzee, Bubbles. You.

ESSAY QUESTIONS 1. East Sanitation Services hired Jon in 1995 as a salesperson for specified routes. In 1999, East started a franchise program and Jon signed a 25-page document. As a franchisee, Jon performed substantially the same services that he had as an employee. East would like to fire Jon, but.

ESSAY QUESTIONS 1. Explain what the term “off-label” means in the context of drugs or medical devices. 2. One of your friends is interested in starting a telemarketing company. She comes to you looking for advice on the FTC’s Telemarketing Sales Rule. What is the scope of Rule and what conduct does.

10. “Gray market” goods are defined as: a. Goods that are intended for overseas markets but are instead imported into the United States. b. Goods that bear the same trademark but are not of the same quality. c. Goods that have similar trademarks but are not of the same quality. d. Identical goods where.

Questions 2-7 are based on a continuing fact pattern 6. Assume that the government brings a charge under Section 1 of the Sherman Act against Jim and Dave. True or False: The government must show the existence of an agreement in order to win the case. a. True. b. False. 7. Dave isn’t too.

6. Marks that are not inherently distinctive are protected only when they acquire what? a. Arbitrary meaning. b. Primary association. c. Secondary meaning. d. Inherent distinctiveness. 7. The distinctive shape of a Coca-Cola bottle would be an example of which of the following? a. Trade dress. b. Ornamentation. c. A service mark. d. A certification mark. 8. Which of the.

5. True or False: The FDC Franchise Disclosure Rule doesn’t require the franchisor to file its disclosure with the federal government. a. True. b. False. 6. True or False: Franchisors are generally liable for the torts of their franchisees. a. True. b. False. 7. If a customer is hurt at a franchisee’s parking lot.

3. Briefly explain the difference between passing off and reverse passing off. 4. Describe the scope and causes of action of the Lanham Act.     .

5. Korrent Equipment Co. and Troy Machine Co. design and sell similar types of specialized industrial machinery. In particular, in 1992, Korrent designed and developed an industrial polisher. Two of the engineers working on the project were Chris Cooke and Lee Schultz. Both were involved in making detailed drawings of.

True / False Questions State whether the following statements are true or false, and explain why. 1. You have come up with a distinctive and non-functional shape for a container for a new olive oil that you intend to market. You can protect this container design through either design patent or trademark.

True/False Questions State whether each of the following is true or false, and explain why. 1. As part of its franchise agreement, the Floral Delivery Company (FDC) requires its franchisees to sell standard floral arrangements, in designs set forth in FDC catalogues, at prices set by FDC. FDC has discovered that.

1. True or False: Antitrust laws exist to protect competitors, not competition. a. True. b. False. Questions 2-7 are based on a continuing fact pattern. 2. Dave owns a trash removal and recycling company named Dave’s Trash Heep. He only has one competitor in the trash removal market, Jim, of Jim’s Junkyard Dogs, but.

ESSAY QUESTIONS 1. Bob owns a store that sells ice fishing bait and tackle. He is negotiating for a large shipment of nightcrawlers (large worms) for the annual December rush. Jim contacts Larry, Darrell, and Darrell’s House of Worms, and the guys tell Bob that they will supply all his nightcrawler.

True / False Questions 1. The Lanham Act provides a cause of action for trademark infringement and for various forms of unfair competition. 2. The FTC monitors both advertising practices and antitrust violations 3. Lack of intent to deceive relieves an advertiser of liability for deceptive advertising under the FTC Act. 4. A consumer.

5. Explain how UCC § 2-207 changed the mirror image rule.     .

11. Jim operates a used clothing business out of his parents' basement. Lately, in an effort to improve his lot in life, Jim has been advertising on local telephone polls in his neighborhood. His flyers state simply: “Buy one used shirt get a used pair of pants for FREE!!!” Jim.

4. Emerald Downs Corp. (EDC) manufactures and sells systems for cleaning industrial machinery. Bergdorf Hanston, Inc. (BHI) is a direct competitor of EDC in this industry. EDC had conceived of a process, ultimately called the “dry system,” for cleaning machinery without use of a lubricant or detergent and with the use.

2. It has become increasingly common for plaintiffs to sue the franchisor for negligence arising from injuries suffered on the franchisee’s premises. What factors must a plaintiff show to recover from a franchisor under a negligence theory? 3. Explain why it is important from the franchisee’s perspective that the franchisor-franchisee relationship.

5. Porter was the sole owner and CEO of a telemarketing firm that marketed furnace filters to consumers over the telephone, Fundamental Furnace Filters, Inc. (FFF). The sales script used by FFF’s employees was drafted by Porter himself. The script was designed to induce consumers into purchasing the filters by persuading.

5. Golf Products, Unlimited (GPU) is a national manufacturer of golf-related products, including instructional videos, golf clubs, bags, and other golfing paraphernalia. GPU wanted to introduce a new product – golf tees that had a micro-chip sensing device that would record the force of the club hitting the ball and.

3. Explain the scope of the FTC’s Cooling-off Rule and what information a seller must provide a buyer. 4. Third party collection agencies are constantly hounding you for overdue debts. They call you at home, at work, and they have even shown up to “work out” a payment plan with you.

4. Hartekz Pretzels has sold its pretzels in a 14-ounce, mustard-yellow bag with navy blue lettering and a stylized picture of a beer mug on it for over 40 years. The pretzels have been marketed nationally for over 30 years. Knowles Food Products has begun selling its new pretzel product in.

1. Which of the following is NOT a function that marks serve? a. They indicate that the goods or services to which the mark is attached are from a single source. b. They advertise the goods or services. c. They provide an identification symbol for a particular good or service. d. They provide a.

2. You work for an ad agency and you are working on the new commercial for the latest SUV to come out of Detroit. The SUV, named Truckasaurus, is a behemoth; it weighs four tons and its V14 engine gets 8 miles to the gallon on the highway. The auto.

1. The Supreme Court formulated a four-part test in Central Hudson to determine if commercial speech is constitutionally protected. Which of the following is NOT one of the four factors? a. Is the asserted governmental interest in the regulation substantial? b. Is the regulation no more extensive than necessary to serve the.

1. On July 14, Emerson Corp. entered into a written agreement to sell to Thomas Corp. 120 cartons of pencils at $4 per carton (total price of $480), delivery within 30 days. The agreement contained no other terms. On July 15, Emerson Corp. and Thomas Corp. orally agreed to modify.

6. On August 14, 1997, Burns Boiler Co. sold a boiler to Clarkson Manufacturing Co. Clarkson paid for the boiler in full, and Burns delivered to Clarkson a bill of sale. The bill of sale stated that Burns was transferring “all of its right, title, and interest” in the boiler.

5. Describe how courts determine the relevant market for purposes of applying the federal antitrust statutes. Also discuss the factors courts consider relevant. 6. National Greeting Cards Inc. is one of three major manufacturers of greeting cards in the United States. National sells and ships its products to more than 22,000.

3. Explain the remedies available to the federal government for antitrust violations under the Sherman and FTC Acts. 4. Gigantic Corp. has just entered a new market that is dominated by many small firms serving different geographic areas. Gigantic Corp. has determined that it can take a large share of the.

5. Negative statements about a competitor’s products are permitted in comparative advertising provided they are clear, truthful, and non-deceptive. However, use of the competitor’s trademark in such advertising will constitute trademark infringement unless the competitor grants permission for the use or the FTC approves the advertising in advance. 6. Of the.

8. The top-selling beer at Country Cowboy’s Saloon is Country Cowboy’s Premium Select. Little known to Country Cowboy’s customers, however, is the fact that the beer is really keg Budweiser pumped into Country Cowboy’s signature bottles and resold to unsuspecting consumers. Budweiser can sue Country Cowboy under state law for.

4. Frank Franchisee owns and operates a free-standing donut franchise. The franchisor granted Frank an exclusive donut territory. Things went well and Frank soon had more dough (pun intended) than he knew what to do with. However, the donut franchisor decided to expand its reach and offered new franchises on.

Questions 10-15 are based on a continuing fact pattern. 11. GGG has set up a geographic distribution system to promote its products and also to make sure that intrabrand pricing competition is as limited as possible. Will courts uphold such agreements? a. No, geographic limitations are reviewed under a per se standard. b..

1. In hybrid contracts involving the sale of goods and services, how do courts generally decide whether to apply the UCC? a. Courts look at the predominant focus of the contract. b. Courts only apply the UCC to the goods portion. c. Courts will not apply the UCC to a hybrid contract. d. Courts.

Essay Questions 1. In 1967, two friends from California designed a sailing surfboard that combined the sports of sailing and surfing. They originally called it a “sailboard. ” They filed for and received a patent, which was assigned to Windsurfing International, Inc. (WSI). In 1968, WSI’s Seattle dealer coined the term.

TRUE/FALSE QUESTIONS Indicate whether each of the following statements is true or false, and explain why. 1. If a manufacturer believes a retailer does not offer a reasonable return policy to consumers, the manufacturer may refuse to sell to that retailer without violating the federal antitrust laws. 2. It is illegal per se.

6. In January, 2003, Karmet Karpets registered the mark “Teenie Genie” for its use on a handheld carpet cleaning machine (a companion product to its full-size Karmet Karpet Genie machine). Over the past two years, several major discount retailers have started carrying the “Teenie Genie,” and the product has become.