Entrepreneur
True/False Questions
2. A lawyer may work on a retainer basis by which he or she provides office and
consulting time, which includes court time and other legal fees related to the action.
3. When resources are limited, the entrepreneur can offer a lawyer stock in exchange for
legal services.
5. A design patent has a term of 20-years, beginning on the date of filing with the Patent
and Trademark Office (PTO).
6. Any invention requiring FDA approval has the term of its patent extended by the
amount of time it takes the FDA to review the invention.
8. Disclosure Document Program gives the inventor the opportunity to protect an idea for
which he or she does not wish to obtain a patent.
10. A disclosure document is used to establish the date of conception of the invention.
11. To prevent others from copying his or her ideas, the entrepreneur should not send
drawings with the patent application.
13. An example of a business method patent is Amazon.com's single clicking feature used
by a buyer to order products.
15. To qualify for trademark protection, the mark must have actually been used on goods
which were shipped or sold.
16. An arbitrary mark is a trademark that has another meaning in our language and is
applied to a product or service.
18. Copyright law does not apply to music, especially when downloaded from the
Internet.
20. While dealing with leaking of trade secrets, legal action can be taken only after the
secret has been revealed.
23. Licensing agreements generate revenue while minimizing risk and start-up investment
costs.
24. Licensing can be a way to start a new venture when the idea may infringe on someone
else’s patent, trademark, or copyright.
25. Under the 1990 revision of the Consumer Product Safety Act, fines were lowered and
looser guidelines for reporting product defects initiated.
26. Claims for product liability under strict liability claim, the product was defective
before its receipt.
27. Life insurance for employees is a required benefit under federal law.
29. Health insurance premiums are less expensive if there is a large group of insured
participants.
30. Under the Sarbanes-Oxley Act CEOs are required to vouch for the firm's financial
statements.
32. Contracts for the sale of real estate must be in writing to be valid.
33. A a patent attorney hired as a specialist to help the entrepreneur obtain a patent would
most likely be hire on a:
A) retainer fee
B) success fee
C) out-of-pocket reimbursement
D) one-time free
35. Which of the following is a contract that grants the owner protection, based on the
appearance of an object?
A) Utility patent
B) Design patent
C) Plant patent
D) Disclosure document
37. The _______ program of the Patent and Trademark Office gives the inventor the
option of protecting an idea for which he or she does not want to obtain a patent, while
allowing the public access to the invention.
A) disclosure document program
B) defensive publication program
C) trademark
D) copyright
38. The _______ was established to facilitate patent filings in multiple countries.
A) General Agreement on Trades and Tariffs
B) Patent and Trademark Office
C) Patent Cooperation Treaty
D) Sarbanes-Oxley Act
39. The ________ is filed to establish a date of conception of an invention and includes a
description of the item.
A) disclosure document
B) defensive document
C) trademark
D) copyright
40. The section of the patent application which provides the criteria by which any
infringement will be determined is the:
A) background and advantages section.
B) description of the invention.
C) claims section.
D) executive summary.
41. The section of the patent application that includes engineering specifications, materials
and components is the:
A) background and advantage section.
B) description of invention.
C) claims section.
D) executive summary.
42. Priceline.com's service where a buyer can submit a price bid for a particular service is
an example of a:
A) utility patent.
B) design patent.
C) business method patent.
D) license.
46. The category of trademarks that denotes no relationship between the mark and the
goods or services is called:
A) a coined trademark.
B) an arbitrary mark.
C) a suggestive mark.
D) a descriptive mark.
48. Which government office is responsible for the federal registration of trademarks?
A) U.S. Trademark Services
B) Local Chambers of Commerce
C) Patent and Trademark Office
D) Internal Revenue Service
53. The _______ created the commission that prescribes safety standards for products.
A) Consumer Product Safety Act
B) Patent Cooperation Treaty
C) Sarbanes-Oxley Act
D) U.S. Labor Department
56. Claims regarding product liability usually fall under all of the following categories
except:
A) negligence.
B) misrepresentation.
C) warranty.
D) violation.
57. The courts consider oral agreements under $500 binding if:
A) the agreement is for less than one year.
B) the parties have previously done business together.
C) the transaction is for services rendered.
D) the new venture is incorporated.