Question 1

A patent is granted for useful inventions.

Accepted Answer

A patent is granted for useful inventions.

Question 2

The mortgagee is the home buyer and the mortgagor is the bank.

Accepted Answer

The mortgagee is the borrower who receives the loan from the bank (the mortgage lender) and the mortgagor is the lender who holds a legal interest in the property until the loan is paid off.

Question 3

The 1934 Securities Exchange Act regulates the conduct of brokerage companies,but not publicly traded companies.

Accepted Answer

The 1934 Securities Exchange Act regulates both the conduct of brokerage companies and publicly traded companies. It establishes requirements for public companies to disclose financial information and prohibits certain types of fraudulent activities.

Question 4

If a mortgage is not recorded,the creditor is still protected,at least as it concerns the debtor's obligation to pay.

Accepted Answer

The recording of a mortgage serves to give notice to future purchasers, creditors, and other interested parties that there is an existing mortgage on the property. However, even if the mortgage is not recorded, the creditor still has a valid claim on the property and the debtor's obligation to pay remains in effect.

Question 5

The Truth-In-Lending Act requires that consumers be told whether they can afford the debt they are considering incurring.

Accepted Answer

The Truth-In-Lending Act requires disclosure of certain information, such as the APR and finance charges, but it does not require lenders to ensure that the consumer can afford the debt.

Question 6

The federal securities laws came about after the stock market crash.

Accepted Answer

The federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934, were passed in response to the stock market crash of 1929 and the Great Depression that followed.

Question 7

A greeting card can be copyrighted.

Accepted Answer

A greeting card can be considered a creative work and may be protected by copyright law. This includes the text, design, and artwork on the card.

Question 8

Trademark protection lasts for renewable 10-year terms.

Accepted Answer

Trademark protection can potentially last indefinitely as long as the owner renews the registration every 10 years and continues to use the trademark in commerce.

Question 9

The Securities and Exchange Commission is an example of specific government regulation.

Accepted Answer

The answer of The Securities and Exchange Commission is an...

Question 10

The Federal Trade Commission regulates the labeling of consumer goods.

Accepted Answer

The Federal Trade Commission is responsible for regulating proper labeling of certain consumer goods to protect consumers from false, misleading or deceptive practices.

Question 11

A plaintiff in a copyright infringement suit can win an order ordering the infringing material to be destroyed.

Accepted Answer

This is true. If a plaintiff in a copyright infringement suit is successful, they can win an order, known as an injunction, that requires the infringing material to be destroyed. This is typically done to prevent the defendant from continuing to profit from the infringing material and to protect the plaintiff's rights to their own intellectual property.

Question 12

Article 2 of the UCC governs secured transactions in personal property.

Accepted Answer

Article 2 of the UCC governs the sale of goods, while Article 9 governs secured transactions in personal property.

Question 13

For purposes of the SEC's rules,an insider includes an employee at any level of the company.

Accepted Answer

According to the SEC's rules, an insider includes not only high-level executives but also any employee who possesses material nonpublic information about the company.

Question 14

A Visa card is an example of unsecured credit.

Accepted Answer

A Visa card is a type of credit card that does not require collateral or security to be granted, thus it is unsecured credit.

Question 15

The SEC has the power to prohibit the issuance of a security because the registration statement is insufficient.

Accepted Answer

The SEC has the power to deny the registration of a security if the registration statement is deemed insufficient or misleading. This is done to protect investors from fraud and ensure that all relevant information about the security is disclosed.

Question 16

The owner of a trade secret is obligated to take all reasonable precautions to prevent those secrets from being discovered by others.

Accepted Answer

The owner of a trade secret has a legal obligation to take all reasonable measures to protect the secrecy of the trade secret. This includes implementing security measures, such as non-disclosure agreements, restrictions on entry to sensitive areas, controlled access to confidential information, and employee training on the importance of safeguarding trade secrets. In the event of a breach of the obligation to maintain secrecy, the trade secret owner may seek legal remedies, such as damages or injunctive relief.

Question 17

Financing statements,having been filed,perfect the creditor's security interest.

Accepted Answer

Financing statements provide public notice of a creditor's security interest in a debtor's property. Once filed, they typically perfect the security interest, giving the creditor priority over other creditors or parties who may try to claim the property. Therefore, the statement is an important legal mechanism for creditors to protect their interests.

Question 18

A manufacturing facility is an example of a stationary source of air pollution.

Accepted Answer

A manufacturing facility is a fixed location where pollutants are released into the environment, making it a stationary source of air pollution.

Question 19

If an investor owns shares in Microsoft,for instance,he or she does not have to register with the SEC before reselling those shares.

Accepted Answer

This is because the investor is considered a secondary market participant and is not engaged in an initial public offering (IPO) or a public offering. As a result, registration with the SEC is not required for the resale of those shares.

Question 20

The FDA allows for some contamination of foods sold the American public.

Accepted Answer

The FDA sets maximum allowable levels for certain contaminants in food. However, these levels are generally very low and are intended to protect public health. The FDA closely monitors food supplies for potential contamination and takes action if unsafe levels are detected.

Quiz 1: Midterm One

A patent is granted for useful inventions.

The mortgagee is the home buyer and the mortgagor is the bank.

The 1934 Securities Exchange Act regulates the conduct of brokerage companies,but not publicly traded companies.

If a mortgage is not recorded,the creditor is still protected,at least as it concerns the debtor's obligation to pay.

The Truth-In-Lending Act requires that consumers be told whether they can afford the debt they are considering incurring.

The federal securities laws came about after the stock market crash.

A greeting card can be copyrighted.

Trademark protection lasts for renewable 10-year terms.

The Securities and Exchange Commission is an example of specific government regulation.

The Federal Trade Commission regulates the labeling of consumer goods.

A plaintiff in a copyright infringement suit can win an order ordering the infringing material to be destroyed.

Article 2 of the UCC governs secured transactions in personal property.

For purposes of the SEC's rules,an insider includes an employee at any level of the company.

A Visa card is an example of unsecured credit.

The SEC has the power to prohibit the issuance of a security because the registration statement is insufficient.

The owner of a trade secret is obligated to take all reasonable precautions to prevent those secrets from being discovered by others.

Financing statements,having been filed,perfect the creditor's security interest.

A manufacturing facility is an example of a stationary source of air pollution.

If an investor owns shares in Microsoft,for instance,he or she does not have to register with the SEC before reselling those shares.

The FDA allows for some contamination of foods sold the American public.