True / False

1. The need to protect intellectual property is recognized in the Declaration of Independence.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Introduction
LEARNING OBJECTIVES: LO - 1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

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
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Introduction
LEARNING OBJECTIVES: LO - 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

3. A beverage company that competes with Coca-Cola Company cannot call its products “Koke.”
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

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
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

5. A trademark can be diluted by the use of a similar mark.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

6. A trademark does not need to be registered to support a trademark infringement action.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

7. The states and the federal government provide for the registration of trademarks.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

8. A fanciful use of ordinary words may be trademarked.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

9. A suggestive use of ordinary words may be trademarked.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

10. A generic term is not protected under trademark law unless it acquires a secondary meaning.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

11. A service mark distinguishes products used, or “put into service,” by the government.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

12. A certification mark distinguishes products approved, or “certified,” by the government.

 a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

13. It is estimated that over 70 percent of the goods imported to the United States are counterfeit.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

14. Trade names have the same legal protection as trademarks.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

15. A trade name can be protected if it is unusual or fanciful.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge
16. A license permits the use of another’s intellectual property for certain limited purposes.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

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
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

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
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO-2 - LO - 2
NATIONAL STANDARDS: United States - AICPA: BB-Legal
United States - BUSPROG - Analytic - Business knowledge and analytic skills
KEYWORDS: Bloom's: Knowledge

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
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Patents
LEARNING OBJECTIVES: LO - 3
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

20. Patent infringement is a tort.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Patents
LEARNING OBJECTIVES: LO - 3
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

21. Foreign firms cannot obtain U.S. patent protection on items that they sell in the United States.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Patents
LEARNING OBJECTIVES: LO - 3
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Critical Thinking
KEYWORDS: Bloom's: Knowledge

22. Copyright protection is automatic—registration is not required.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Critical Thinking
KEYWORDS: Bloom's: Knowledge

23. It is possible to copyright an idea.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

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
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Critical Thinking
KEYWORDS: Bloom's: Knowledge

25. A copy does not need to be exactly the same as the original to infringe a copyright.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

26. A person who buys a copyrighted work cannot sell it to someone else.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO-4
NATIONAL STANDARDS: United States - AICPA: BB-Legal
United States - BUSPROG - Analytic - Business knowledge and analytic skills
KEYWORDS: Bloom's: Knowledge

27. A marketing technique can be a trade secret.

 a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trade Secrets
LEARNING OBJECTIVES: LO - 5
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

28. A customer list is not a trade secret.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trade Secrets
LEARNING OBJECTIVES: LO - 5
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

29. Pricing information is not a trade secret.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trade Secrets
LEARNING OBJECTIVES: LO - 5
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

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
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trade Secrets
LEARNING OBJECTIVES: LO - 5
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Critical Thinking
KEYWORDS: Bloom's: Knowledge

31. Anyone who writes a book has automatic international copyright protection.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: International Protections
LEARNING OBJECTIVES: LO - 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

32. Each member country of the TRIPS agreement must include in its domestic laws intellectual property rights.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: International Protections
LEARNING OBJECTIVES: LO - 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

33. The TRIPS agreement covers computer programs.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: International Protections
LEARNING OBJECTIVES: LO - 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

34. The TRIPS agreement established standards for the international protection of intellectual property rights for
computer programs.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: International Protections
LEARNING OBJECTIVES: LO-1
NATIONAL STANDARDS: United States - AICPA: BB-Legal
United States - BUSPROG - Analytic - Business knowledge and analytic skills
KEYWORDS: Bloom's: Knowledge

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
POINTS: 1
DIFFICULTY: Easy
REFERENCES: International Protections
LEARNING OBJECTIVES: LO-1
NATIONAL STANDARDS: United States - AICPA: BB-Legal
United States - BUSPROG - Analytic - Business knowledge and analytic skills
KEYWORDS: Bloom's: Knowledge

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Knowledge

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

42. 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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

43. 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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

44. 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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

45. 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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

46. Trevor’s operates The Spicy Chocolatier Café chain of restaurants. “The Spicy Chocolatier Café” is a
a. certification mark.
b. collective mark.
c. service mark.
d. trade name.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

47. 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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

48. 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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO-2 - LO - 2
NATIONAL STANDARDS: United States - AICPA: BB-Legal
United States - BUSPROG: Reflective
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO-2 - LO - 2
NATIONAL STANDARDS: United States - AICPA: BB-Legal
United States - BUSPROG: Reflective
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO-2 - LO - 2
NATIONAL STANDARDS: United States - AICPA: BB-Legal
United States - BUSPROG: Reflective
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Patents
LEARNING OBJECTIVES: LO - 3
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Patents
LEARNING OBJECTIVES: LO - 3
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Patents
LEARNING OBJECTIVES: LO - 3
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Patents
LEARNING OBJECTIVES: LO - 3
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

55. RiteMade Machinery, Inc., designs, makes, and sells a 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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Patents
LEARNING OBJECTIVES: LO - 3
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Patents
LEARNING OBJECTIVES: LO - 3
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Patents
LEARNING OBJECTIVES: LO - 3
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO-4
NATIONAL STANDARDS: United States - AICPA: BB-Legal
United States - BUSPROG: Reflective
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trade Secrets
LEARNING OBJECTIVES: LO - 5
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trade Secrets
LEARNING OBJECTIVES: LO - 5
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trade Secrets
LEARNING OBJECTIVES: LO - 5
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Trade Secrets
LEARNING OBJECTIVES: LO - 5
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

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
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: International Protections
LEARNING OBJECTIVES: LO - 1
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Legal
KEYWORDS: Bloom's: Application

Essay

71. In 2003, 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 trademark 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 unauthorized use and the mark. As in this problem, the products involved do not
have to be similar. To succeed on a charge of dilution, however, the owner must
show that its mark was famous when the dilution took place.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Trademarks
LEARNING OBJECTIVES: LO - 2
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Decision Modeling
KEYWORDS: Bloom's: Analysis

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
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Copyrights
LEARNING OBJECTIVES: LO - 4
NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: Reflective
LOCAL STANDARDS: United States - OH - Default City - AICPA Decision Modeling
KEYWORDS: Bloom's: Analysis