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. On April 11, Buffy receives the purchase order, sends Call-Mart a confirmation with additional […]

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 “windsurfing. ” WSI applied for and was granted trademarks for various terms using 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 because of inadequate lighting, is the franchisor liable? a. Yes, if […]

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 wildly successful. Karmet has now discovered that in March, 2008, Toffee Toys had adopted the […]

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 to Clarkson. Clarkson had no immediate need for the boiler, so it remained in storage […]

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 requirements for advertising? a. The advertising is truthful and […]

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 brands was small and that no single brand was so superior to the others as […]

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 a bag of the same size with similar coloring and lettering, and a similar […]

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 following is NOT an element […]

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 four main types of intellectual property law that we discussed this term, only trade […]