Hal Patents a New Type of Running Shoe

question 3

Multiple Choice

Hal patents a new type of running shoe. Hal and Iconic Shoe Company enter into a contract that allows the firm to make and market the shoe in exchange for royalty payments to Hal that decrease after the patent expires. In a previous case, a similar agreement was held to be invalid. According to the dissent in Kimble v. Marvel Entertainment, LLC, stare decisis​

• A) ​means "sticking to some wrong decisions."
• B) ​does not require retaining "baseless and damaging precedents."
• C) ​promotes unpredictability and inconsistency in the business world.
• D) ​permits parties to negotiate a licensing agreement that reflects the true value of a patent.

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Definitions:

IFRS 1

The International Financial Reporting Standard that outlines the necessary steps for an entity to ensure its financial statements are IFRS-compliant for the first time.

First-Time Adopters

Entities that are implementing certain accounting standards for the first time in their financial reporting.

Reconciliations

The process of ensuring that two sets of records, usually the balances of two accounts, are in agreement.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is used globally.