Q10

[khaleesiwantstodolaw]

I was down to A and C for this question and ended up picking C over A. Is C wrong because of the usage of the term "the legality of channel flow diversion"? Mostly because channel flow diversion is NOT a legal practice.

[tommywallach]

Heyo,

Let's start by looking at our two theories.

Exhaustion: TO loses all rights once product is sold.
Territoriality: TO have rights in registered country.

(A) CORRECT. Exhaustion says there are no rights at all once the product is sold, so they couldn't enforce distribution agreements. Territoriality says they do have the right to do this (As long as it's in that country).

(B) Neither theory has anything to say on this subject. Everything is about the rights after the sale.

(C) Territoriality says that the rights only exist within the country where the trademark is registered, so it would agree with exhaustion that the trademark owner has no rights in this situation.

(D) Neither theory has anything to say about the significance of trademarks to consumers.

(E) Neither theory has anything to say about the usefulness of trademarks vis-a-vis marketing.

Hope that helps! Remember, always start out by getting your own grip on the information required to answer the question. We can locate the disagreement very easily, just by looking at the two theories!

-t