A USLicensor Will Be Most Successful in Maintaining Effective Control Over

question 33

Multiple Choice

A U.S.licensor will be most successful in maintaining effective control over licensees and preventing them from voiding its contract by:

• A)using lawyers from both countries to write the licensing agreement.
• B)insisting that all licensees have a published code of ethics.
• C)not allowing the licensee to pay a fee for the use of proprietary knowledge.
• D)locally registering patents and trademarks to the U.S.firm and not to the licensee.

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Definitions:

Water-Diamond Paradox

An economic paradox that questions why diamonds are pricier than water despite water being essential for survival and diamonds having relatively little practical use.

Marginal Utility

The extra pleasure or benefit a consumer receives from using an additional unit of a product or service.

Demand Schedule

A table that lists the quantity of a good that consumers are willing and able to purchase at varying price points, at a specific moment in time.

Total Utility

The total satisfaction or benefit that a consumer derives from consuming a certain quantity of goods or services.