Mark Recently Started a Small Business and Acquired a Domain

question 27

Multiple Choice

Mark recently started a small business and acquired a domain name for the business.At the same time,he remembered hearing about people buying up names related to companies and to famous individuals and then selling the names for astronomical sums.Mark wants to buy the domain name "Sharonstone.com." He figures he will start a fan club for the famous movie star,and then see if he can sell the domain name to her for a profit.Which is true in these circumstances regarding Mark's options?

• A) He will be unable to buy the name because it is the name of a person.
• B) He will have to give Sharon Stone the first opportunity to buy the name.
• C) He could buy the domain name, but will likely be liable under the Anti-cybersquatting Consumer Protection Act since Sharon Stone is famous, and since obtaining the domain name "Sharonstone.com" to obtain a profit from her would legally constitute bad faith.
• D) He could buy the domain name, and will be liable under the Anticybersquatting Consumer Protection Act only if it can be proven that he acted in bad faith in acquiring the name and that Sharon Stone can prove that she suffered damages from his Web site.
• E) He could buy the domain name, but could be liable under the Anticybersquatting Consumer Protection Act only if it is proven that he acted in bad faith in acquiring the name and if Sharon Stone can prove that he earned profits from the fan club Web site.

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Definitions:

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product and are a significant portion of the production cost.

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed costs as period costs.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.

Manufacturing Margin

The difference between the cost of goods sold by a manufacturing company and its total sales, reflecting the gross margin specific to manufacturing operations.