Business Law: Contracts and Intellectual Property

A comprehensive review deck of 30 fill-in-the-blank practice cards covering contracts, UCC provisions, warranties, digital law, trade secrets, patents, copyrights, and trademarks.

Under contract law, a promise must be supported by a bargained-for __________ that is legally sufficient.

consideration

Under the Uniform Commercial Code (UCC), Article 2 governs contracts for the sale of goods, whereas Article 2A governs contracts for the __________.

lease of goods

A contract where the offeror's offer can be accepted only by the performance of an act by the offeree is known as a __________.

unilateral contract

A contract that has no legal effect, meaning neither party can enforce it or is obligated to perform, is a __________.

void contract

Under equitable doctrine, an implied-in-law contract is also known as a __________ and is imposed to prevent unjust enrichment and unjust detriment.

quasi contract

Under the __________, the offeree must accept the terms of the offer without modification; any attempt to accept on different terms constitutes a counteroffer.

mirror image rule

An agreement in which an offeree prevents the offeror from revoking an offer by paying compensation to keep the offer open for an agreed period is an __________.

option contract

When two parties agree to a compromise, the settlement agreement is called an accord, and when that accord is performed, it is called a __________.

satisfaction

The equitable doctrine of __________ permits a court to order enforcement of a contract that lacks consideration when an injustice can be avoided only by enforcing the promise.

promissory estoppel

Under the infancy doctrine, the legal act of a minor to rescind a contract entered into with an adult is called __________.

disaffirmance

Under the duty of __________, if a minor has transferred money, property, or other variables to a competent party before disaffirming, that party must place the minor in status quo.

restitution

Laws that set an upper limit on the annual interest rate that can be charged on certain types of loans are known as __________.

usury laws

An exculpatory agreement relieves a party from tort liability for ordinary negligence, but cannot be used for situations involving willful conduct, intentional torts, fraud, recklessness, or __________.

gross negligence

Unlike a regulatory licensing statute, a person who provides services without a license required by a __________ statute can enforce the contract and recover payment.

revenue-raising

Under the implied warranty of fitness for human consumption, the __________ asks what a consumer would expect to find or not find in food or drink that is consumed.

consumer expectation test

When an innocent party is deceived as to the nature of their act and does not know what they are signing, it is classified as fraud in the inception, or fraud in the __________.

factum

Under the one-year rule of the Statute of Frauds, an executory contract that cannot be performed by its own terms within __________ of its formation must be in writing.

$$1\text{ year}$$

According to the UCC Statute of Frauds, contracts for the sale of goods priced at __________ or more must be in writing to be enforceable.

$$\$500$$

In the case of successive assignments of the same contract right, the __________ dictates that the first assignment in time prevails, regardless of notice.

American rule

Section 230 of the __________ prohibits treating interactive computer services as the publisher or speaker of content provided by others.

Communications Decency Act

Under the Defend Trade Secrets Act, a civil lawsuit must be brought within __________ from the date the misappropriation is discovered.

$$3\text{ years}$$

The federal statute that makes it a federal crime to steal another party's trade secrets and imposes prison sentences and fines is the __________.

Economic Espionage Act

A party who reverse engineers a rival's product is legally permitted to use the discovered trade secret, but cannot use the __________ of the original creator.

trademarked name

To obtain a patent, the __________ mandates that the patent application explain enough about the invention so that someone skilled in the art can both make and use it.

enablement requirement

A company that buys or holds patents without any intention of making or selling a real product is called a __________.

patent troll

Copyrights owned by businesses are protected for the shorter of $120\text{ years}$ from creation or __________ from the year of first publication.

$$95\text{ years}$$

The Copyright Claims Board provides a streamlined alternative process for copyright holders who seek damages under __________.

$$\$30,000$$

A __________ certifies that a seller has met certain geographical location requirements, quality standards, or manufacturing standards established by the owner of the mark.

certification mark

A trademark that becomes a common term for a product line or type of service becomes a __________ and loses protection under federal trademark law.

generic name

Under trademark dilution, __________ occurs when a famous mark is linked to products of inferior quality or portrayed in an unflattering context likely to evoke negative beliefs about its owner.

tarnishment