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Does the Magnuson-Moss Warranty Act apply in this case? Is the re-roofing of a home a “consumer product” under the Act?

1. Does the Magnuson-Moss Warranty Act apply to all warranties?
2. Is a house a consumer product?
3. What about a product that is attached to a house, such as an air conditioner or hot water heater?

1. Is a new roof real estate or a consumer product?
2. So where do you draw the line? What about new windows? Or a new carpet?

What obligations does a salesperson have to consumers? Why not simply adopt the rule, “Buyer Beware”?

Match the following terms with their definitions:
___ A. EPA
___ B. ESA
___ C. NEPA
___ E. RCRA
1. Regulates the clean-up of hazardous wastes improperly dumped in the past
2. Establishes rules for treating newly created wastes
3. Protects red wolves
4. The agency that regulates environmental policy in the United States
5. Requires all federal agencies to prepare an environmental impact statement

True and False
1. In establishing national standards under the Clean Air Act, the EPA need not consider the cost of compliance.
2. The Clean Water Act requires anyone discharging pollution into water to obtain a permit from the EPA.
3. Any individual, business or federal agency that significantly affects the quality of the environment must file an environmental impact statement.
4. Since the United States was founded, about half of its existing wetlands have been destroyed.
5. Violating the environmental laws can be a criminal offense, punishable by a prison term.

1. Which of the following statements is true of Superfund?
I. Anyone who has ever owned a site is liable for clean-up costs.
II. Anyone who has ever transported waste to a site is liable for clean-up costs.
III. Anyone who has ever disposed of waste at a site is liable for clean-up costs.
A. Neither I, II, nor III
B. I, II, and III
C. I and II
D. II and III
E. I and III

2. Which of the following statements is true?
I. The EPA sets national air quality standards.
II. The EPA develops plans to meet air quality standards.
III. States set their own air quality standards.
IV. The states develop plans to meet air quality standards.
A. II and III
B. III and IV
C. I and IV
D. I, III, and IV
E. I and II

3. Which of the following statements are true about the Central Arizona case? (There can be more than one correct answer.)
A. Emissions from the Navajo Generating Station (NGS) were greatly degrading the view of the Grand Canyon.
B. The cost of reducing emissions from the (NGS) was trivial.
C. The EPA performed a cost-benefit analysis before ordering the NGS to reduce its emissions.
D. Under the Clean Air Act, the cost of reducing the emissions was irrelevant.
E. A court may overturn an EPA order if it believes that the preponderance of the evidence is on the plaintiff’s side.

4. The RCRA does not:
A. Ban new open garbage dumps
B. Require garbage to be treated before it is taken to an existing dump
C. Require landfills to monitor groundwater
D. Provide financial assistance to states
E. Require states to develop a permit program for landfills

5. An Environmental Impact Statement is not required to include a discussion of:
A. The commercial value of any threatened species
B. Available alternatives to the proposed actions
C. Direct impacts
D. Indirect impacts
E. Impact on cultural resources

Tariq Ahmad owned Shankman Laboratories. He decided to dispose of some of the lab’s hazardous chemicals by shipping them to his home in Pakistan. He sent the chemicals to Castelazo & Associates (in the United States) to prepare the materials for shipment.
Ahmad did not tell the driver who picked up the chemicals that they were hazardous, nor did he give the driver any written documentation. Ahmad had packed the chemicals hurriedly in flimsy containers that were unsafe for transporting hazardous materials. He also grossly misrepresented to Castelazo the amount and type of hazardous material that he was shipping to Pakistan. Has Ahmad violated U.S. law? What penalties might he face?

The marbled murrelet is a rare seabird that nests only in old-growth forests on the West Coast. Logging has destroyed so much of its habitat that its numbers in California have declined from 60,000 to between 2,000 and 5,000. Pacific Lumber Co. wanted to harvest trees from 137 acres of land it owned in the Owl Creek forest in California. It originally received approval to log, on the condition that it would cooperate with regulators to protect the murrelet. But the company sneaked in one weekend and cut down trees before it had done anything for the murrelet. Caught in the act, it promised no more logging until it had a plan to protect the birds. This time it waited until the long weekend over Thanksgiving to take down some more trees. Finally, a federal court ordered a permanent halt to any further logging. There was no evidence that the company had harmed the murrelet. Had it violated the law?

YOU BE THE JUDGE WRITING PROBLEM: The Lordship Point Gun Club operated a trap and skeet shooting club in Stratford, Connecticut, for 70 years. During this time, customers deposited close to 5 million tons of lead shot and 11 million pounds of clay target fragments on land around the club and in Long Island Sound. Forty-five percent of sediment samples taken from the Sound exceeded the established limits for lead. Was the Gun Club in violation of the RCRA? Argument for the Gun Club: The Gun Club does not dispose of hazardous wastes, within the meaning of the RCRA. Congress meant the statute to apply only to companies in the business of manufacturing articles that produce hazardous waste. If the Gun Club happens to produce wastes, that is only incidental to the normal use of a product. Argument for the plaintiff: Under the RCRA, lead shot is hazardous waste. The law applies to anyone who produces hazardous waste, no matter how.

Suppose that you are the manager of the General Motors Hummer plant in Mishawaka, Indiana.
Hummers are the successor to the U.S. Army jeep and have become popular recreational vehicles among the rich and famous. Arnold Schwarzenegger has several.
The Hummer requires special protective paint that, as it turns out, reacts with other chemicals during the application process to create ozone, a pollutant. You want to increase production of Hummers. Are there any legal requirements you must observe?

Nucan Aluminum Corp. hired Mozart Co. to dispose of an emulsion it used during manufacturing. This emulsion contained hazardous materials. Without Nucan’s knowledge, Mozart dumped the emulsion into a borehole that connected to deep underground mines along the Susquehanna River in Pennsylvania.
You can guess what happened next. Approximately 100,000 gallons of water contaminated with hazardous substances spilled from the borehole into the river. Is Nucan liable?

Did the EPA act arbitrarily and capriciously in requiring the NGS to spend half a billion dollars to improve winter visibility at the Grand Canyon by at most 7%?

1. How much would the Navaho Generating Station have to spend to comply with the EPA order to reduce its sulfur dioxide emissions?
2. What benefit would NGS and the public at large gain from this expenditure?
3. Without an order from the EPA, would NGS ever choose to reduce its sulfur dioxide emissions?

1. How many visitors do you think there are to the Grand Canyon in the winter months?
2. What is the cost per visitor of the proposed EPA order?

Is a canal a point source when it transmits pollutants that it did not create?

1. Why did the defendants want C-11 defined as a point source?
2. What did the court say about point sources?

Why did the District argue that C-11 was not a point source?

Did Kelly violate the RCRA?

1. Who was accused of doing something wrong in this case?
2. What legal claim was made by the U.S. Federal Government against the Defendant?
3. What was the Courts decision?

What was Kelly’s defense?

If the owner of a contaminated site has not been sued under CERCLA but has paid cleanup costs, can it seek contribution from prior owners of the property?

Match the following terms with their definitions:
___ A. S Corp
___ B. Dissociation
___ C. Close corp
___ D. Dissolution
___ E. Limited partnership
1. The first step in the process of terminating a partnership
2. Created by federal law
3. The general partner is liable
4. Created by state law
5. A partner leaves the partnership

True or False:
1. Sole proprietorships must file a tax return.
2. Ownership in a partnership is not transferable.
3. Creditors of a partnership must first seek recovery from partnership assets before going after the personal assets of a partner.
4. In both a limited partnership and a limited liability limited partnership, the partners are not personally liable for the debts of the partnership.
5. Venture capitalists often require companies they own to become LLCs before going public.

Multiple-Choice Questions
1. CPA QUESTION: Assuming all other requirements are met, a corporation may elect to be treated as an S corporation under the Internal Revenue Code if it has:
A. Both common and preferred stockholders
B. A partnership as a stockholder
C. 100 or fewer stockholders
D. Th e consent of a majority of the stockholders

2. Which of the following statements is false:
A. Partners are liable to the partnership for their own negligent conduct.
B. Partners must turn over to the partnership any earnings from an activity that is related to the partnership’s business.
C. If a partner is off ered an opportunity that is related to the partnership business, he must fi rst seek permission of the other partners before accepting it.
D. A partner must turn over any profi ts from an activity that is a confl ict of interest with the partnership.
E. Partners are personally liable for intentional misconduct.

3. Th e following event does not automatically dissolve a term partnership:
A. Th e partnership achieves its goals.
B. A partnership is dissociated and all of the remaining partners vote to wind up the business.
C. A court determines the partnership cannot be run at a profi t.
D. A partner withdraws.
E. Th e partners agree to dissolve before the end of the term.

4. Joint and several liability means that:
A. A creditor of the partnership must sue all of the partners together.
B. A creditor of the partnership must sue the partnership and all of the partners together.
C. A creditor of the partnership can recover the full amount owed from the partnership or from any of the partners.
D. A creditor of the partnership can recover the full amount owed from the partnership and from each partner, even if this results in the creditor receiving more than his original debt.
E. A creditor of the partnership can recover from the partners individually, but not from the partnership.

5. While working part-time at a Supercorp restaurant, Jenna spills a bucket of hot French fries on a customer. Who is liable to the customer?
A. Supercorp alone
B. Jenna alone
C. Both Jenna and Supercorp
D. Jenna, Supercorp, and the president of Supercorp
E. Jenna, Supercorp, and the shareholders of Supercorp

Under Delaware law, a corporation cannot appear in court without a lawyer, but a partnership can. Fox Hollow Ventures, Ltd., was a limited liability company. One of its employees, who was not a lawyer, appeared in court to represent the company. Does an LLC more closely resemble a partnership, which may represent itself in court, or a corporation, which requires representation by a lawyer?

Alan Dershowitz, a law professor famous for his wealthy clients (O. J. Simpson, among others), joined with other lawyers to open a kosher delicatessen, Maven’s Court. Dershowitz met with greater success at the bar than in the kitchen-the deli failed after barely a year in business. One supplier sued for overdue bills. What form of organization would have been the best choice for Maven’s Court?

Mrs. Meadows opened a biscuit shop called The Biscuit Bakery. The business was not incorporated. Whenever she ordered supplies, she was careful to sign the contract in the name of the business, not personally: The Biscuit Bakery by Daisy Meadows. Unfortunately, she had no money to pay her flour bill. When the vendor threatened to sue her, Mrs. Meadows told him that he could only sue the business, because all the contracts were in the business’s name. Will Mrs. Meadows lose her dough?

The Logan Wright Foundation (LWF), an Oklahoma corporation, was a partner in a partnership formed to operate two Sonic Drive-In restaurants. LWF argued that it was not responsible for Sonic’s taxes because LWF was merely a limited partner, with limited liability to the partnership’s creditors, including the IRS. The partnership had never filed a certificate of limited partnership with the secretary of state. Is it a valid limited partnership?

1. Why do 76 percent of all small businesses choose to operate as sole proprietorships?
2. Who establishes the rules to determine if a corporation is an S corp or a C corp?
3. Who establishes the rules to determine if a corporation is a close corporation?

Are the limitations on S corporations (one class of stock, etc.) serious restraints that dramatically impede an entrepreneur’s options or minor technicalities?

1. What is the goal of Superfund?
2. Who polluted this site?
3. Then why can’t Aviall seek contribution from Cooper if Cooper is also responsible for the pollution?

How does that make sense, didn’t Aviall do the right thing?

What arguments can you make that CERCLA should be reformed?

What arguments can you make that CERCLA should not be amended (or at least not weakened)?

Is the anti-takings provision of the ESA constitutional?

1. Who’s afraid of the big bad red wolf?
2. What legal claim did the plaintiffs make against the Secretary of the Interior (Bruce Babbitt)?

Do the red wolves have a substantial impact on interstate commerce.

What general support for the ESA did the court offer?

Match the following terms with their definitions:
___ A. ECPA
___ B. Fourth Amendment to the Constitution
___ C. CFAA
___ D. COPPA
___ E. CDA
1. Regulates access to e-mail
2. Regulates Internet service providers
3. Regulates collection of information from children
4. Prohibits unreasonable searches and seizures of computers
5. Regulates computer hacking

True or False:
1. The First Amendment to the Constitution protects bloggers who post insults about other people.
2. Under the Gramm-Leach-Bliley Act, a financial institution cannot disclose private information about consumers unless the consumers give permission.
3. The FTC requires Web sites to establish a privacy policy and then abide by it.
4. Any intended recipient of an e-mail may forward it to whomever she wishes.
5. The police can read anyone’s e-mail anytime as long as they have probable cause to believe that the e-mail will reveal evidence of a crime.

1. Rory is concerned that the employees in her division are wasting too much time on personal matters. She would like to monitor them. Which of the following activities is she not allowed to do?
A. Ask key employees to forward to her any e-mails they receive from their colleagues that contain jokes or other silly content
B. Read all messages sent to employee pagers
C. Read all employee e-mails sent through the office system
D. Read employees’ private e-mail accounts
E. Read all e-mails sent in the ordinary course of business

2. Three terrorists are plotting to blow up a high-rise office building, which could lead to thousands of deaths. The police capture their computers and read the files before obtaining a warrant. Which of the following searches would be illegal?
I. Marshall has written elaborate plans, which are stored on the hard drive of his laptop.
II. Winston has violated school policies by downloading plans for bombs from the Internet through his school’s network.
III. Montgomery has made rental car reservations over the Internet in a cyber-cafe.
A. I, II, and III
B. Neither I, II, nor III
C. Just I
D. Just II
E. Just III

3. The Computer Fraud and Abuse Act prohibits all of the following activities except:
A. Theft of financial information
B. Illegal file sharing over the Internet
C. Theft of information from the U.S. government
D. Negligent damage to a computer
E. Computer extortion

4. Under the Can-Spam Act, it is legal to:
A. Send out advertisements for sexually explicit
Web sites
B. Send e-mails with false return addresses
C. Send e-mails with fake headers
D. Refuse to unsubscribe recipients
E. Send out e-mails with headers that, while technically accurate, are in fact misleading

5. Your novel has just been published and is now for sale on You access Amazon via Earth-link one day and are horrified to see that a reader (or alleged reader) has posted a bad review that is not only totally unfair but also totally inaccurate. (You did not plagiarize portions of the book!) Which of the following would be liable to you:
II. Earth-link
III. The person who wrote the review
A. I, II, and III
B. Neither I, II, nor III
C. I and III
D. Just I
E. Just III

Matt Drudge published a report on his Web site ( that
White House aide Sidney Blumenthal “has a spousal abuse past that has been effectively covered up. . . . There are court records of Blumenthal’s violence against his wife.” The Drudge Report is an electronic publication focusing on Hollywood and Washington gossip. AOL paid Drudge $3,000 a month to make the Drudge Report available to AOL subscribers.
Drudge e-mailed his reports to AOL, which then posted them. Before posting, however, AOL had the right to edit content. Drudge ultimately retracted his allegations against Blumenthal, who sued AOL. He alleged that under the Communications Decency Act of 1996, AOL was a “content provider” because it paid Drudge and edited what he wrote. Do you agree?
Putting liability aside, what moral obligation did AOL have to its members? To Blumenthal? Should AOL be liable for content it bought and provided to its members?

To demonstrate the inadequacies of existing computer security systems, Cornell student Robert Morris created a computer virus. His plan, however, went awry, as plans sometimes do. He thought his virus would be relatively harmless but it ran amok, crashing scores of computers at universities, military sites, and medical research sites. Under what statute might Morris be charged? Does it matter that he did not intend to cause damage?

Nancy Garrity and Joanne Clark worked for John Hancock Mutual Life Insurance Company. On their office computers they regularly received sexually explicit e-mails from friends and from Internet joke sites, which they then sent to coworkers. When a fellow employee complained, Hancock searched their e-mail folders and, finding inappropriate e-mails, fired the two women. The Hancock e-mail policy states:
“Messages that are defamatory, abusive, obscene, profane, sexually oriented, threatening or racially offensive are prohibited. Company management reserves the right to access all e-mail files.” The two employees filed suit against Hancock, alleging that the company had invaded their privacy. How would you rule as judge?

What can you do to protect your privacy online? Draw up a concrete list of steps that you might reasonably consider. Are there some actions that you would not be willing to take, either because they are not worth the effort or because they are too sneaky?

During the course of 10 months, Joseph Melle sent more than 60 million unsolicited e-mail advertisements to AOL members. What charges could be brought against him?

How is online privacy currently guarded?

Should investigators be entitled to review all files on a computer? What if the files had been deleted? What if they would reveal the identity of a vicious murderer? What can you do to protect yourself?

Did Professor Angevine have a reasonable expectation of privacy in his office computer?

1. What illegal material did Professor Angevine store on his university computer?
2. How did the police find this illegal material?
3. Did the police obtain a search warrant before conducting this search?

Was the court right? Was Professor Angevine unreasonable in assuming that his university computer was private?

1. But Professor Angevine erased the material. Couldn’t you argue that he has a reasonable expectation in deleted material?
2. Under what circumstances would Professor Angevine have had a reasonable expectation of privacy?

Did Scott have a right to privacy in e-mails he sent to his lawyer using the BI system?

Which provision of the Electronic Communication Privacy Act applies to Scott’s e-mails?

1. Scott was e-mailing his lawyer, so the content of the e-mails should be privileged by the attorney-client privilege. Should that trump the employer’s right to monitor his e-mail?
2. What should Scott have done differently?
3. What should Scott have done differently?

Would a reasonable person find this intrusion offensive? Does an employee have a reasonable expectation of privacy in his e-mail files?

1. What is the legal standard for an invasion of privacy suit? What must a plaintiff prove to win such a suit?
2. If you were McLaren, what arguments would you make to show that you had a reasonable expectation of privacy?
3. How is this case different from Angevine?

1. Who owned the e-mail system that McLaren used? Who established it?
2. What was the purpose of the e-mail system? Why did Microsoft set it up?
3. Why did Microsoft care about the contents of McLaren’s personal folder?
4. Which is the more important interest—Microsoft’s concern about the behavior of an employee or an employee’s right to maintain some privacy at work?

Does the Washington anti-spam law violate the Commerce Clause of the Constitution?

1. How many spam messages did Jason Heckel send per week?
2. Was he honest in disclosing who had sent the messages?
3. Under what circumstances does a statute violate the Commerce Clause?

What did the Washington law prohibit?

Did this statute unduly burden interstate commerce?

How did the state benefit from prohibiting spam?

What burden does this statute impose on spammers?

Does the CDA protect Matchmaker from liability?

1. What role did Matchmaker play in developing the content that was posted as a profile of Carafano?
2. Was Matchmaker a content provider?
3. Is Matchmaker liable?

1. Why did Congress make ISPs immune from liability for material posted online by others under the Communications Decency Act?
2. Can Carafano recover damages from anyone?

Are GTE and PSINet liable for the posting and sale of unauthorized videos? Should their motion to dismiss be granted?

1. What is the difference between an ISP and a web host?
2. What is the argument for protecting ISPs from liability for content?
3. Is there an argument that web hosts should be treated differently from ISPs?

1. How difficult would it have been for GTE or PSINet to determine that the nude videos had been made without the plaintiffs’ permission?
2. Did the court make the right decision in this case?

1. How much would you be willing to pay for a recording of your favorite band in concert?
2. How are these recordings made?
3. Is eBay liable for selling illegal items?

1. Should the CDA apply to eBay?
2. But don’t web hosts do that, too?

Match the following terms with their definitions:
___ A. Patent
___ B. Copyright
___ C. Trade secrets
___ D. Trademark
___ E. Paris Convention
1. Protects the particular expression of an idea
2. Words that a business uses to identify its products
3. Extends patent protection overseas
4. Grants the inventor exclusive use of an invention
5. Compilation of information that would give its owner an advantage in business

True or False:
1. T F Once you have purchased a CD and copied it onto your iPod, it is legal to give the CD to a friend.
2. A provisional patent lasts until the product is used in interstate commerce.
3. In the case of corporations, copyright protection lasts 120 years from the product’s creation.
4. Under the fair use doctrine, you have the right to make a photocopy of a chapter of this textbook for a classmate.
5. The first person to file the application is entitled to a patent over someone else who invented the product first.

1. To obtain a patent, an inventor must show that her invention meets all of the following tests, except:
A. It has not ever been used anyplace in the world.
B. It is a new idea.
C. It has never been described in a publication.
D. It is nonobvious.
E. It is useful.

2. After the death of Babe Ruth, one of the most famous baseball players of all time, his daughters registered the name “Babe Ruth” as a trademark. Which of the following uses would be legal without the daughters’ permission?
I. Publication of a baseball calendar with photos of Ruth
II. Sales of a “Babe Ruth” bat
III. Sales of Babe Ruth autographs
A. Neither I, II, nor III
B. Just I
C. Just II
D. Just III
E. I and III

3. To prove a violation of copyright law, the plaintiff does not need to prove that the infringer actually copied the work, but she does need to prove:
I. The item has a © symbol on it.
II. The infringer had access to the original.
III. The two works are similar.
A. I, II, and III
B. II and III
C. I and II
D. I and III
E. Neither I, II, nor III

4. Eric is a clever fellow who knows all about computers. He:
I. Removed the author’s name from an article he found on the Internet and sent it via e-mail to his lacrosse team, telling them he wrote it
II. Figured out how to unscramble his roommate’s cable signal so they could watch cable on a second TV
III. Taught the rest of his lacrosse team how to unscramble cable signals
Which of these activities is legal under the Digital Millennium Copyright Act?
A. I, II, and III
B. Neither I, II, nor III
C. II and III
D. Just III
E. Just I

5. Which of the following items cannot be trademarked?
A. Color
B. Symbol
C. Phrase
D. Surname
E. Shape

Rebecca Reyher wrote (and copyrighted) a children’s book entitled My Mother Is the Most Beautiful Woman in the World. The story was based on a Russian folktale told to her by her own mother. Years later, the children’s TV show Sesame Street televised a skit entitled “The Most Beautiful Woman in the World.” The Sesame Street version took place in a different locale and had fewer frills, but the sequence of events in both stories was identical. The author of the Sesame Street script denied he had ever seen Reyher’s book but said his skit was based on a story told to his sister some 20 years before. Has Sesame Street infringed Reyher’s copyright?

A man asked a question of the advice columnist at his local newspaper. His wife had thought of a clever name for an automobile. He wanted to know if there was any way they could own or register the name so that no one else could use it. If you were the columnist, how would you respond?
Strategy: The couple want to trademark this name. Can they do so? (See the “Result” at the end of this section.)

Frank B. McMahon wrote one of the first psychology textbooks to feature a light and easily readable style. He also included slang and examples that appealed to a youthful student market. Charles G. Morris wrote a psychology textbook that copied McMahon’s style. Has Morris infringed McMahon’s copyright?
Strategy: McMahon cannot copyright an idea, only the expression of an idea. (See the “Result” at the end of this section.)

After Edward Miller left his job as a salesperson at the New England Insurance Agency, Inc., he took some of his New England customers to his new employer. At New England, the customer lists had been kept in file cabinets. Although the company did not restrict access to these files, it said there was a “you do not peruse my files and I do not peruse yours” understanding. The lists were not marked “confidential” or “not to be disclosed.”
Did Miller steal New England’s trade secrets? Whether or not he violated the law, was it ethical for him to use this information at his new job?

In the documentary movie, Expelled: No Intelligence Allowed, there is a 15-second clip of “Imagine,” a song by John Lennon. His wife and sons, who held the copyright, sued to block this use of the song. The movie is sympathetic to “intelligent design”—the theory that the universe is too complex to have been created by evolution alone, and there must have been a god involved. Who will win this suit?

Is it true that “he who lights his taper at mine receives light without darkening mine”?

1. Is data processing software patentable?
2. How is this different from a2 + b2 = c2?

1. Are mathematical formulas patentable?
2. What did Signature patent?

1. Will this patent (and others like it) promote the development of intellectual property by protecting a novel idea or stifle innovation by limiting who can use it?

2. What about Priceline’s claim that it owns a patent for the idea of reverse auction systems on the Internet? If that patent were valid, wouldn’t it greatly limit entrepreneurial activities on the Internet?

1. Why is this activity illegal?
2. What is the harm? Record companies make so much money anyway.

Come on, what’s the harm in copying a few songs off the Internet?

Do Google’s thumbnail displays of Perfect 10’s photos violate copyright law? Are they a fair use?

1. What must a person prove in order to win an infringement action:
2. Didn’t Google copy Perfect 10’s work?
3. Then why is that not a copyright violation?

How does this doctrine make sense? It seems to fly in the face of the purpose of copyright protection.

Were Grokster and StreamCast violating copyright law?

1. What is a peer-to-peer network?
2. Is there any legitimate use for a peer-to-peer network?
3. Then why would it be illegal to use the peer-to-peer software?

Is that what Grokster and the other defendants did?

1. Is intent to violate the law enough to create liability?
2. Why didn’t the court just tell the plaintiffs to go after those users who were directly infringing copyright law?

What’s wrong with downloading music or movies for free? Everyone does it.

1. Does the Lanham Act permit a color to be trademarked?
2. How did Qualitex distinguish its press pads from those of its competitors?
3. Why didn't Qualitex simply put its name on the pads?

1. Can any color be trademarked?
2. Can you give an example of a color that could not be trademarked?
3. Can you think of other colors that identify the sources of products?

Suppose that Loretta opens a candy shop on Main Street. Wary about her potential liability serving food to the public, she incorporates her business. However, she fails to follow the manufacturer’s suggestions and refrigerate her fudge. As a result, every mother in town falls ill after eating gifts of fudge on Mother’s Day. The business has a bank account with a few thousand dollars. Loretta has $100,000 in savings in a mutual fund account. Will the injured mothers have a right to the mutual funds, or only the bank account?

1. Would you be worried about trademark issues?
2. What can Warner Bros. do now?

The trademark search revealed no similar names, so Warner was safe, right?

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