Siesta Inc Owns and Operates a Chain of Mexican-Food Restaurants

question 16

Multiple Choice

Siesta Inc owns and operates a chain of Mexican-food restaurants across Canada.The restaurants have become wildly popular, largely because each restaurant is carefully designed and decorated to evoke an authentic Mexican feel.The company is, however, worried that competitors may begin to emerge and draw away customers.Siesta Inc therefore wants to protect itself as much as possible under trademark laws.Which of the following statements is TRUE?

• A)Siesta Inc is entitled to register a trademark for the shape and design of its "Sombrero Salad," which is a unique dish created by the company's head chef.
• B)Siesta Inc will not enjoy any protection until it registers its trademarks.
• C)Siesta Inc can trademark the appearance of physical objects, such as its restaurants, its logo, and its menus, but it cannot trademark a phrase, such as an advertising slogan.
• D)Although Siesta Inc is entitled to use ® to designate a registered trademark, it cannot use any symbol to designate an unregistered intellectual property interest.
• E)Siesta Inc is entitled to sue for trademark depreciation only if it can prove that customers became confused and mistakenly thought that restaurants owned by another company were part of the Siesta chain of restaurants.

---

Definitions:

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the laws related to commerce and sales.

Deduction

Deduction in a financial context refers to the removal of a certain amount from gross income or expenses, which reduces the taxable income or net profit.

Damages

Compensation sought or awarded in a lawsuit for loss or injury suffered by the plaintiff.

Breaching Party

The entity or individual who fails to fulfill their obligations under a contract, thereby violating the agreement.