Homer Ford Invented a Unique Pollution-Free Engine That Runs on Gas

question 64

Multiple Choice

Homer Ford invented a unique pollution-free engine that runs on gas created by chicken droppings and old leaves. This fuel also causes no wear on the engine of the car. Homer built a prototype in a workshop in his backyard. Before he seeks publicity, he would like to protect his invention and any business that emerges from the development and sale of his engines. In this regard, which of the following is false?

• A) If he can succeed in getting a patent on his novel engine, he would have a government-granted monopoly to produce, sell, or otherwise profit from his invention.
• B) Surnames cannot be registered as trademarks unless the name has acquired a secondary meaning at the time of application.
• C) If he is granted a patent, he will be giving up any trade secret protection he might have had to protect his ideas.
• D) If anyone steals his ideas, Ford could also sue in tort for injurious falsehood.
• E) If he obtains a patent, the protection will be for a period of 20 years.

---

Definitions:

Strike Price

The fixed price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a fixed period.

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for a business or investment.

Call Premium

The additional amount above the exercise price that one must pay to purchase a call option.