Question 9 intellectual property law and franchising

QUESTION 9
(Intellectual Property Law and Franchising, chapter 18)
1 is the CORRECT answer because the statement is INCORRECT . A registered trademark
does not cover all the goods and services of the proprietor. A registered trademark only covers
the specific category of goods and services for which it was registered.
2 is INCORRECT because the statement is CORRECT. Copyright is afforded to everything that
meets the requirements for copyright protection.
A drawing does not have to have any artistic qualities in order to be protected by copyright.
Even technical sketches are protected by copyright.
3 is INCORRECT because the statement is CORRECT. A patent does afford the proprietor
monopoly rights in respect of an invention for a limited period.
4 is INCORRECT because the statement is CORRECT. Information must be secret and must
have commercial value in order to be protected as a trade secret. It is thus correct to say that
secret information must have commercial value in order to be protected as a trade secret.
QUESTION 10
(Intellectual Property Law and Franchising, chapter 18)
2 is CORRECT . Franchise agreements often contain terms which place restraints of trade on
franchisees. The franchisor may place restraints on the franchisee with regard to products and
sales in order to maintain standards and achieve uniformity. The franchisee may, for example,
be obliged to buy products from a supplier designated by the franchisor.
1 is INCORRECT. Franchise agreements often contain terms which place restraints of trade on
franchisees. The franchisor may place restraints on the franchisee with regard to products and
sales in order to maintain standards and achieve uniformity. The franchisee may, for example,
be obliged to buy products from a supplier designated by the franchisor and not from whomever
he or she may prefer.
3 is INCORRECT. The franchisee is obliged to conform to the restraints of trade imposed by the
franchisor in the franchise agreement and may not claim a reduction in the royalties payable in
terms of this agreement, even if the restraints have an effect on profitability.

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QUESTION 11
(Alternative Dispute Resolution, chapter 19)
2 is the CORRECT answer because the statement is INCORRECT . Arbitration indeed offers the
benefit of expert and expeditious adjudication over court litigation, but in the case of arbitration
there is no right of appeal to the courts if a party is unhappy with an arbitrator’s award. The
arbitrator’s award is final unless it can be overturned by the courts on fairly narrow grounds,
such as bias on the part of the arbitrator.
1 is an INCORRECT answer because the statement is CORRECT. The Supreme Court of
Appeal has stated that arbitration has four distinctive attributes. Two of these attributes are that
(a) it proceeds from an agreement between parties who consent to a process by which an
arbitrator takes a decision that is binding on the parties and (b) the agreement provides for a
process whereby the substantive rights of the parties are determined.