Law and Ethics in the Business Environment 7th Edition by Terry Halber – Test Bank

CHAPTER 9
Ownership, Creativity and Innovation: Intellectual Property

Questions
1. Debora Halbert asserts in her essay that:
a. women have benefited greatly from intellectual property laws.
b. intellectual property has historically benefited men more than women.
c. in the nineteenth century, writing poetry and novels enabled women to not only express themselves intellectually but to reap financial rewards as well.
d. when women knitted or quilted, they were reluctant to share their patterns with other women.
ANSWER: B PAGE: 321-2

2. American copyright law creates a bundle of rights for the owner, including the right to reproduce, distribute, perform, display, or adapt the work.
a. True
b. False
ANSWER: A PAGE 322-3
3. In a lawsuit for copyright infringement, a defendant can avoid liability by successfully arguing _________, based on the notion that the free flow of ideas sometimes requires quoting or borrowing from a copyrighted work.
a. collective rights
b. misappropriation
c. unlimited use
d. fair use
ANSWER: D PAGE: 324

4. If an author owns a copyright to a non-fiction essay, then publishes that essay in an anthology of similar essays published by a major publishing company, the rights involved in this relationship would be referred to as ______.
a. collective work
b. public domain
c. collective bargaining
d. joint domain
ANSWER: A PAGE: 330

5. Once the copyright on a work has expired,
a. The owner can renew it for a new term
b. The work is in the public domain
c. The work becomes the property of the government
d. The work is considered no longer creative
ANSWER: B PAGE: 330

6. The difference between the Project Gutenberg (PG) and the Google book scanning project is:
a. The PG limits itself to the “classics”
b. The PG limits itself to only works in the public domain
c. Google only digitizes full documents but the PG digitizes key segments
d. The PG limits itself to “orphan” works – those with hard-to-find authors or owners.
ANSWER: B PAGE: 337

7. Nike’s swoosh, McDonald’s arches, and the Xerox name are all identifiable trademarks. Which of the following laws protect(s) them?
I. Lanham Trademark Act of 1946
II. Federal Trademark Dilution Act of 1995
III. Sonny Bono Act of 1998
a. I only
b. II only
c. I and II
d. II and III

ANSWER: C PAGE: 341

8. In order to obtain a patent under U.S. Patent Law, an inventor must have an invention that is
I. Not obvious
II. Unique
III. Useful
IV. Not a modification of any prior patents
a. I only
b. I and II
c. I, II and III
d. I, II, III and IV
ANSWER: C PAGE: 342
9. Reverse Engineering would be considered a violation of the Uniform Trade Secret Act.
a. True
b. False
ANSWER: B PAGE: 347

Essay Questions
10. Discuss how intellectual property is different from other kinds of property.
ANSWER: IP differs from other kinds of property (land, buildings, stocks, consumer goods) in several key ways. While often expensive and time consuming to generate, intellectual property can be quickly and easily copied. Unlike tangible items whose use has physical limitations—only one person can drive a car at a time; a pie can be divided into only so many slices—the number of persons who can use any one item of intellectual property is boundless.
PAGE: 316