1.
A contract is enforceable even if it is not written or
signed.
True
False
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(Answer: True) While a signed
document
will make it easier to prove there was in fact
a contract, a signed writing is not required.
All that is needed for enforcement is proof
that there was in fact an agreement, which
can be done through witnesses or
circumstantial evidence.
2.
I can use the TM symbol only after I register my
trademark.
True
False
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(Answer: False) You can use the TM
symbol any time you use a name, logo,
slogan, etc. as a way of identifying your
business to consumers. However you can
only use the ® after you have registered
your trademark.
3.
I cannot be sued as an individual for my business
conduct as long as I incorporate my business.
True
False
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(Answer: False) While it is true that one of
the often-cited reasons for incorporating a
business is to protect your personal assets
from liability for events occuring in your
business, the fact remains that the liability
sheild is not 100% effective. Courts may
"pierce the corporate veil," or in other words
remove the liability shield in certain cases.
This occurs when corporations with one or
a few shareholders fail to conform to the
formalities of their corporation, such as
holding annual shareholders meetings or
taking corporate minutes, or even by form-
ing or operating the corporation without
adequate capital to meet expected business
risks.
4.
I own the copyright in my creations as long as I put "©"
followed by the date I first made my creation, then my
name and the phrase, "All Rights Reserved." (e.g. © 1998
Pliam Law Group, P.A.. All Rights Reserved).
True
False
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(Answer: False) While placing this information
On your creations can be useful for providing
notice of your rights, you first have to make
sure the copyright in your creations actually
belongs to you. If you are an employee, or
even an independant contractor who has
consented to a work-for-hire contract in a
signed writing, then you are not the owner
of the copyright in your own creation. The
copyright owner is your employer, or the
person you contracted with in the case of
the independent contractor. Incidentally,
ownership of copyrights in the U.S. no
longer depend on providing the notice
described in this question.
5.
I can own a copyright in my creations without
registering them with the Copyright Office.
True
False
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(Answer: True) Registration provides many
benefits such as allowing you to enforce
your rights in federal court, and to demand
payment of statutory damages, which are
almost always higher than non-statutory
damages. Registration also helps in the
event of a lawsuit by granting favorable
status on certain proof issues.
However, registration is not required to
establish rights in a copyright.
6.
I can form a legal partnership with a friend, even
without signing any a papers.
True
False
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(Answer: True) In most states, all that is
necessary to create a partnership is for two
or more people to begin working as co-owners
in a business for profit. Since most states
have adopted the Uniform Partnership Act,
partnership decision-making and ownership
will be decided for the partnership unless
they elect otherwise by drawing up their
own partnership agreement. You should
check the laws of your own state to see
what implications partnership formation may
have for you. The Uniform Partnership Act
can control aspects of your partnership that
are less desireable than you choose for
yourself.
7.
I could be sued in Saudi Arabia for content on my web
site that is objectionable under Saudi laws.
True
False
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(Answer: True) This is a bit of a trick quest-
ion. In reality, nobody knows for sure yet
how the laws of jurisdiction will apply to
Internet web sites. However, there already
exist cases in which countries have success-
fully asserted their jurisdiction over
citizens
from other countries.
8.
I never need to seek permission before linking to
another business' site.
True
False
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(Answer: False) If you are linking to a site
in a manner which suggests a business
relationship with that site, then you may be
committing an unfair trade practice, or even
trademark infringement if you are using their
name or logo as part of the link.
9.
I can use the "®" symbol after registering a trademark
with my state.
True
False
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(Answer: False) You can only use the ®
symbol only after registering your trade or
service mark with the federal government.
While registering a trademark with your
state will grant certain rights and
protections,
it does not give you the privilege of using
the
® symbol.
10.
If I share my business ideas with a potential investor,
that investor can copy my ideas with impunity.
True
False
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(Answer: True) Generally speaking, unless
you have the investor sign a non-compete
agreement and confidentiality agreement,
the investor is free to take all your ideas
and
use them for their own benefit. There are
exceptions to this rule if your ideas are
patented or if the investor is already in a
fiduciary relationship with you. However,
in most cases, your ideas are not protected
without the above-mentioned contracts in
place.
DETERMINE YOUR LEGAL IQ:
Number
Correct
IQ
9-10
Genius
7-8
Brilliant
5-6
Bright
3-4
Smart
1-2
Above average
0-1
Reconsider plans to
attend law school