The Legal Environment of Business, by Meiners, Ringleb and
Edwards (12th Ed.)
WorksheetTwo: Chapters 12, 8 and 9
Matching: Please match the proper term from the wordbank
with the definition.
1. ____ an
association of two or more persons to carry on a business as co-owners for a
profit.
2. ____ is
when partners complete any unfinished business and collect and distribute the
partnership’s remaining assets.
3. ____ may consist of any formula, pattern, devise
or compilation of information which is used in one’s business and which gives
him an opportunity to obtain an advantage over competitors who do not know how
to use it.
4. ____ is
the right to enter land owned by another and make certain use of it or take
something from the land.
5. ____ is
the unauthorized intrusion by a person or thing on land belonging to another.
6. _____ is
the reputation of a firm that gives value to trademarks and other such forms of
intellectual property.
7. _____ is
a grant from the government to an inventor for the right to exclude others from
making, using, offering for sale or selling an invention for 20 years after the
inventor files the appropriate application.
8. _____
means that the shareholders of a corporation are not liable for the debts of
the corporation beyond the amount of money they have invested in the
corporation.
9. _____ are
intangible rights that are held by an author or owner of literary property for
a certain time period.
10. _____ the
primary way to transfer ownership interests.
A.Winding Up
B.Copyrights
C.General Partnership
D.Patent
E. Trespass to Land
F.Limited Liability
G.Trade Secrets
H.Goodwill
I.Easement
J.Deed
Fill In the Blank
1. ____________
property refers to land and is a legally protected expectation of being able to
use a thing for one’s advantage. Interest in real property is usually
transferred via a , which must conform with the following rules:
a. Must be
in ,
and
b. Identify
the current ,
and
c. Identify
the new ,
and
d. Describe
the , and
e. State
that the ownership interest is being ,
and
f. List any
to which the transfer is subject.
2. A is
a business relationship in which two people are held to higher standards regarding
their duties to one another. In fact, they have duties,
which require that each person act in and
put their personal interests beneath those of the business.
3. An item
is a
if:
a. It is not
known by the ,
and
b. The
business would lose its if the
were
to obtain it, and
c. The
owner has taken to
protect it from .
4. A in
common is a form of ownership in which each owner has an undivided interest in
the property. A tenancy is when two or more persons have the
same interest in the undivided possession of the property, which means that
each has the right of .
5. A is an artificial legal created
under state law. A corporation’s
,
along with an application, must be filed with the appropriate state office
(Secretary of State) along with a .
The State will review the ‘s
application for completeness, then issue a .
Then a meeting will be held, at which are enacted and is
issued to individuals known as
(the
owners).
6. An
interest in rented property is called a .
A is a person or entity with possessory rights
for a fixed period of time or at will, if agreed. An agreement that creates a out of an
estate an contains conditions, such as how much and when to pay rent, is known
as a .
7. An is an interest in which (a) is or may become and (b) is ownership measured in terms of .
8. have
a limited number of shareholders and may not openly sell shares. Can elect to be classified as ,
which only have one class of stock and no more than 100 shareholders. Usually is comprised only of involved in the firm itself,
such as doctors or lawyers.
9. The
strongest trademarks are and ,
including or
applied to a product notrelated to the word as
commonly used. Less protection is available for marks,
where the mark directly implied what the good is.
10.
Companies allow individuals to invest in a business without putting their
personal wealth at risk. It is created by filing presents entrepreneurs with the disadvantage
of .
Multiple Choice: Select all of the following answers which
are correct responses to the question. This means that you may circle one or
more answers in response to a question.
1. Pheobe
wrote a very successful sequel to Pride and Prejudice. She made $50,000 on the
book and it is sold in Target stores throughout the United States. This year,
she’s published a sequel to Stephanie Myer’s Twilight series. She is sued for
which of the following?
a. Patent
infringement
b. Breach of
Confidentiality Agreement
c. Fraud
d. Misrepresentation
e. Copyright
Infringement
2. In the
documentary, The Corporation, which of the following traits do the filmmakers
attribute to corporations?
a. Narcissism
b. Obsessive
compulsive behavior
c. Callous
unconcern for the feelings of others
d. Easy to
anger
e. Disregard
of social norms
3. John was
fired by his boss for what he believes was an unfair reason. Instead of leaving
immediately as asked, John goes to his co-workers office and rants for 30
minutes before returning to his own office. Angry, he grabs the thumbdrive
containing the company’s list of clients and the pricing agreements with those
clients, he also locks all the filing cabinets in his office and takes the only
set of keys with him, as well as his company provided laptop. He goes to a bar
with another former employee of the company who is now working for the
company’s main competitor. Drunk and irritated, John agrees to give the other
employee the thumbdrive, as well as John’s user name and passwords to some
company accounts. What causes of action might the company reasonably bring
against John?
a. Trespass
to Personal Property
b. Private
Nuisance
c. Conversion
d. Misappropriation
e. Violation
of the Economic Espionage Act
4. Ted owns
a franchise of a popular fast food restaurant. As a franchisee, he is licensed
to use the trademarks of his Franchisor in marketing his business. Ted realizes
that his Franchisor isn’t using their trademark to the full extent they could
be, and has ideas on how to use the trademark to make more money for the
company. Ted goes and buys a hundred domain names that are variations of the
Franchisor’s trademark and offers to sell them to the Franchisor for a small
personal profit. Ted also launches a site
where he has listed small products like pens, paperweights, and stress
balls with the trademark on them, so he can sell them to other franchisees who
are interested in using those items in their own business. What claims might
the Franchisor bring against Ted?
a. Copyright
infringement
b. Trademark
infringement
c. Cybersquatting
d. Trademark
dilution
e. Counterfeiting
5. Gerald
owns a franchise. Gerald bought the franchise with his wife, Lucinda, through
an entity they formed called G&L, LLC. Gerald and Lucinda each have a fifty
percent ownership interest in G&L, LLC. Under the Franchise Agreement,
ownership of the franchise cannot be assigned without written approval from the
franchisor. Gerald and Lucinda get divorced, but Gerald keeps running the
franchise. Lucinda wants nothing to do with the franchise, but she wasn’t involved
in running the business before the divorce anyway. Gerald decides to sell the
business to an employee, Jeff. Gerald and Jeff have agreed on the terms of the
sale, but have not yet finalized the purchase agreement or received approval
for the assignment from the franchisor when Gerald has a heart attack and dies.
Who owns the franchised business?
a. Gerald
b. Lucinda
c. Gerald’s
estate
d. The
franchisor
e. Jeff
