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Business English Exercises
 

Gray Market Goods

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Home > Teaching Business English > Business English Lessons, Advanced Level # 405
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The problem of grey market goods has been plaguing the judicial system for many years, with judges trying to define trademark and copyright holders' rights.

Correct answer: (c) plaguing

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In the case of trademarks, the courts have coalesced around the guideline that goods intended for outside the United States with the US trademark holder's approval, when imported, will be an infringement only if such 'foreign' products differ significantly from the ones sold in the US.

Correct answer: (a) coalesced

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What constitutes a'significant' difference, needless to say, varies among products.

Correct answer: (c) constitutes

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For instance, Coke bottles sold in Panama were found significantly different: the Spanish labels did not list the contents, while the packaging and shipping caused the Panamanian bottles to be susceptible to product spoilage and leaking.

Correct answer: (c) susceptible

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The Federal Court of Appeals has added a caveat to this guideline, considering that goods don't substantially vary if the trademark holder has allowed foreign-directed goods into the US in a way that all or materially all of the United States sales are not the American version of the product.

Correct answer: (a) caveat

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In another case, Elk Corporation brought their case under 21 USC 1209 before the United States International Trade Commission.

Correct answer: (a) before

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The Administrative Law Judge of the USITC held in favour of Elk, stating that numerous substantial differences clearly existed between the cultivators sold by Elk in the US and their European models, and included differences in the services offered along with the cultivators.

Correct answer: (b) held

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While the respondents gave evidence showing that Elk had authorized sales of these machines in the United States, the judge placed the burden of proof upon them to establish that Elk had approved those sales and that the quantity of sales was material.

Correct answer: (a) burden

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In spite of the fact that the respondents had raised the point as a defense, the judge stated that Elk was required to establish a prima facie case that materially all of its US sales conformed to the American version of the cultivator.

Correct answer: (b) facie

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That is to say, first Elk needed to establish a United States standard against which the alleged substantial variations of the European model were to be mensurated.

Correct answer: (a) alleged

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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
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