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Entrepreneurship, 11e (Hisrich)
Chapter 6 Protecting the Idea and Other Legal Issues for the Entrepreneur

1) Intellectual property is any patents, trademarks, copyrights, or trade secrets held by an


entrepreneur.

Answer: TRUE
Difficulty: 1 Easy
Learning Objective: 06-01 To identify and distinguish intellectual property assets of a new
venture including software and Websites.
Accessibility: Keyboard Navigation

2) Entrepreneurs, because of their lack of understanding of intellectual property, ignore


important steps that they should have taken to protect these assets.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-01 To identify and distinguish intellectual property assets of a new
venture including software and Websites.
Accessibility: Keyboard Navigation

3) A lawyer may work on a retainer basis by which he or she provides office and consulting
time, which includes court time and other legal fees related to the action.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-01 To identify and distinguish intellectual property assets of a new
venture including software and Websites.
Accessibility: Keyboard Navigation

4) When resources are limited, the entrepreneur can offer a lawyer stock in exchange for legal
services.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-01 To identify and distinguish intellectual property assets of a new
venture including software and Websites.
Accessibility: Keyboard Navigation

5) A patent is a contract between the government and an inventor.

Answer: TRUE
Difficulty: 1 Easy
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
6) A design patent has a term of 14 years, beginning on the date of filing with the Patent and
Trademark Office (PTO).

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

7) Any invention requiring FDA approval has the term of its patent extended by the amount of
time it takes the FDA to review the invention.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

8) The most commonly issued type of patent is the plant patent.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

9) A utility patent grants the owner protection from anyone else making, using, and/or selling the
identified invention and generally reflects protection of new, useful, and unobvious processes.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

10) The three main categories of patents are design, utility and provisional patents.

Answer: FALSE
Difficulty: 1 Easy
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
11) The Patent and Trademark Office has established the Office of International Patent
Cooperation in order to decrease the uncertainty of intellectual property rights in global markets.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

12) A provisional patent application can be used to establish the date of conception of the
invention.

Answer: TRUE
Difficulty: 1 Easy
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

13) To prevent others from copying his or her ideas, the entrepreneur should not send drawings
with the patent application.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

14) The three major parts of a patent application are the introduction, description and warranty
sections.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

15) The claims section of a patent application is probably the most difficult section of the
application to prepare since this area sets the criteria by which any infringements will be
determined.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

3
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
16) Copying a product and improving it may not be patent infringement.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

17) An example of a business method patent is Amazon.com's one-click feature used by a buyer
to order products.

Answer: TRUE
Difficulty: 1 Easy
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

18) To minimize patent risk, an entrepreneur should seek a patent attorney who has experience in
their product line.

Answer: TRUE
Difficulty: 1 Easy
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

19) A trademark is a distinguishing word, name, or symbol used to identify a product.

Answer: TRUE
Difficulty: 1 Easy
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

20) A trademark is given a 50-year registration with no renewal.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

4
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
21) To file for trademark protection only intent to use is necessary.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

22) Once accepted, the trademark is published in the Trademark Official Gazette to allow any
party 90 days to oppose or request an extension to oppose.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

23) Getting a trademark typically takes 2 years.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

24) One benefit of having a registered trademark is that it provides a basis for filing trademark
application in foreign countries.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

25) A copyright protects original works of authorship.

Answer: TRUE
Difficulty: 1 Easy
Learning Objective: 06-04 To learn the purpose of a copyright and how to file for one.
Accessibility: Keyboard Navigation

5
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
26) A copyright can be used to protect sculptures or blueprints.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-04 To learn the purpose of a copyright and how to file for one.
Accessibility: Keyboard Navigation

27) Copyright law does not apply to music, especially when downloaded from the Internet.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-04 To learn the purpose of a copyright and how to file for one.
Accessibility: Keyboard Navigation

28) A trade secret is protected by state law.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-05 To identify procedures that can protect a ventures trade secrets.
Accessibility: Keyboard Navigation

29) Protection against the leaking of trade secrets is difficult to enforce and noncompete
agreements are not often successful in courts.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-05 To identify procedures that can protect a ventures trade secrets.
Accessibility: Keyboard Navigation

30) While dealing with leaking of trade secrets, legal action can be taken only after the secret has
been revealed.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-05 To identify procedures that can protect a ventures trade secrets.
Accessibility: Keyboard Navigation

31) Licensing requires the licensee to pay a royalty to the licensor in return for permission to
copy the patent, trademark, or copyright.

Answer: TRUE
Difficulty: 1 Easy
Learning Objective: 06-06 To understand the value of licensing to either expand a business or
start a new venture.
Accessibility: Keyboard Navigation

6
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
32) Licensing a trademark generally involves a franchising agreement.

Answer: TRUE
Difficulty: 1 Easy
Learning Objective: 06-06 To understand the value of licensing to either expand a business or
start a new venture.
Accessibility: Keyboard Navigation

33) Licensing agreements generate revenue while minimizing risk and start-up investment costs.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-06 To understand the value of licensing to either expand a business or
start a new venture.
Accessibility: Keyboard Navigation

34) Licensing can be a way to start a new venture when the idea may infringe on someone else's
patent, trademark, or copyright.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-06 To understand the value of licensing to either expand a business or
start a new venture.
Accessibility: Keyboard Navigation

35) Casualty insurance may include fire, burglary and theft, and business interruption coverage.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-08 To illustrate important issues related to contracts, insurance, and
product safety and liability.
Accessibility: Keyboard Navigation

36) Life insurance of key employees is mandatory in some states.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-08 To illustrate important issues related to contracts, insurance, and
product safety and liability.
Accessibility: Keyboard Navigation

7
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
37) Private companies are not included in the Sarbanes-Oxley Act.

Answer: TRUE
Difficulty: 1 Easy
Learning Objective: 06-07 To recognize the implications of new legislation that affects the
board of directors and internal auditing processes for public companies.
Accessibility: Keyboard Navigation

38) Under the Sarbanes-Oxley Act CEOs are not required to vouch for the firm's financial
statements because they are not involved with the day to day operations of the firm.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-07 To recognize the implications of new legislation that affects the
board of directors and internal auditing processes for public companies.
Accessibility: Keyboard Navigation

39) An oral agreement is enforceable indefinitely.

Answer: FALSE
Difficulty: 2 Medium
Learning Objective: 06-08 To illustrate important issues related to contracts, insurance, and
product safety and liability.
Accessibility: Keyboard Navigation

40) Contracts for the sale of real estate must be in writing to be valid.

Answer: TRUE
Difficulty: 2 Medium
Learning Objective: 06-08 To illustrate important issues related to contracts, insurance, and
product safety and liability.
Accessibility: Keyboard Navigation

41) Which of the following is not part of intellectual property?


A) Trademarks
B) Copyrights
C) Trade secrets
D) Insurance

Answer: D
Difficulty: 2 Medium
Learning Objective: 06-01 To identify and distinguish intellectual property assets of a new
venture including software and Websites.
Accessibility: Keyboard Navigation

8
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
42) A ________ is a contract between the government and an inventor.
A) patent
B) franchise
C) trademark
D) trade secret

Answer: A
Difficulty: 1 Easy
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

43) Which of the following is a contract that grants the owner protection, based on the
appearance of an object?
A) Utility patent
B) Design patent
C) Plant patent
D) Disclosure document

Answer: B
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

44) The ________ patent is granted for a 14-year term.


A) utility
B) design
C) plant
D) procedure

Answer: B
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

9
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
45) Which of the following statements concerning patents is not true?
A) A patent gives the owner a negative right, preventing anyone from making, using, or selling
the defined invention.
B) A utility patent has a term of 20 years.
C) Plant patents are issues under the same provisions as utility patents.
D) Traditionally, utility patents were thought to be useless because it is easy to design around a
patent.

Answer: D
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

46) The ________ is filed to establish a date of conception of an invention and replaces what
used to be known as a disclosure document.
A) provisional patent
B) defensive document
C) trademark
D) copyright

Answer: A
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

47) The section of the patent application which provides the criteria by which any infringement
will be determined is the:
A) background and advantages section.
B) description of the invention.
C) claims section.
D) executive summary.

Answer: C
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

10
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
48) The section of the patent application that includes engineering specifications, materials and
components is the:
A) background and advantage section.
B) description of invention.
C) claims section.
D) executive summary.

Answer: B
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

49) Priceline.com's service where a buyer can submit a price bid for a particular service is an
example of a:
A) utility patent.
B) design patent.
C) business method patent.
D) license.

Answer: C
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

50) The initial registration for a trademark lasts:


A) 10 years.
B) 14 years.
C) 17 years.
D) 20 years.

Answer: A
Difficulty: 1 Easy
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

11
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
51) Which of the following statements concerning trademarks is not true?
A) A trademark may be a word, slogan, symbol, design or particular sound.
B) Unlike a patent, trademarks last indefinitely.
C) It is possible to file for a trademark if you intend to use this mark in the future.
D) The PTO is responsible for the federal registration of trademarks.

Answer: B
Difficulty: 2 Medium
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

52) To apply for a trademark:


A) intent to use the mark is required.
B) the mark must actually have been used on goods.
C) the mark must be copyrighted.
D) the mark must have been used on goods that are already traded.

Answer: A
Difficulty: 2 Medium
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

53) It takes approximately ________ to obtain a trademark.


A) 12 months
B) 13 months
C) 14 months
D) 18 months

Answer: B
Difficulty: 2 Medium
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

12
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
54) Which government office is responsible for the federal registration of trademarks?
A) U.S. Trademark Services
B) Local Chambers of Commerce
C) Patent and Trademark Office
D) Internal Revenue Service

Answer: C
Difficulty: 1 Easy
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

55) Which of the following is not one of the four requirements needed when filing a trademark
registration?
A) A drawing of the mark
B) A claims section
C) Five specimens showing actual use of the mark
D) A completed registration form and appropriate fee

Answer: B
Difficulty: 2 Medium
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

56) Once accepted, the trademark is published in the Trademark Official Gazette to allow any
party ________ days to oppose or request an extension to oppose the use of the mark.
A) 10
B) 30
C) 90
D) 180

Answer: B
Difficulty: 2 Medium
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

13
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
57) Authors or publishers of software are protected under:
A) copyrights.
B) trademarks.
C) utility patents.
D) trade secrets.

Answer: A
Difficulty: 1 Easy
Learning Objective: 06-04 To learn the purpose of a copyright and how to file for one.
Accessibility: Keyboard Navigation

58) Copyrights are registered with:


A) the U.S. Justice Department.
B) the Internet Commission.
C) the Patent and Trademark Office.
D) the Library of Congress.

Answer: D
Difficulty: 2 Medium
Learning Objective: 06-04 To learn the purpose of a copyright and how to file for one.
Accessibility: Keyboard Navigation

59) Copyrights can protect all of the following except:


A) music.
B) molded plastic parts.
C) sculptures.
D) models.

Answer: B
Difficulty: 2 Medium
Learning Objective: 06-04 To learn the purpose of a copyright and how to file for one.
Accessibility: Keyboard Navigation

60) The term of a copyright is the author's life plus:


A) 20 years.
B) 30 years.
C) 50 years.
D) 70 years.

Answer: D
Difficulty: 2 Medium
Learning Objective: 06-04 To learn the purpose of a copyright and how to file for one.
Accessibility: Keyboard Navigation

14
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
61) Trade secrets are protected:
A) by the General Agreement on Tariffs and Trade.
B) by federal law.
C) by state law.
D) by the Library of Congress.

Answer: C
Difficulty: 2 Medium
Learning Objective: 06-04 To learn the purpose of a copyright and how to file for one.
Accessibility: Keyboard Navigation

62) Trade secrets can be protected for:


A) an unlimited period of time.
B) 20 years according to federal law.
C) 14 years according to state law.
D) 50 years if renewed to the maximum allowed, five 10-year renewable terms.

Answer: A
Difficulty: 2 Medium
Learning Objective: 06-05 To identify procedures that can protect a ventures trade secrets.
Accessibility: Keyboard Navigation

63) Licensing can be used by the entrepreneur to:


A) protect the Board of Directors from liability.
B) insulate management from liability.
C) protect confidentiality of a trade secret.
D) copy a competitor's patent.

Answer: D
Difficulty: 3 Hard
Learning Objective: 06-06 To understand the value of licensing to either expand a business or
start a new venture.
Accessibility: Keyboard Navigation

15
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
64) Which of the following statements concerning the Sarbanes-Oxley Act is not true?
A) The Act requires CEOs to vouch for financial statements.
B) The Act provides that any attempt to influence the internal auditing process is considered a
criminal act.
C) The Act applies to both private and public companies.
D) The Act requires independent audit committees which may conflict with some foreign
countries' rules and customs.

Answer: C
Difficulty: 2 Medium
Learning Objective: 06-07 To recognize the implications of new legislation that affects the
board of directors and internal auditing processes for public companies.
Accessibility: Keyboard Navigation

65) The ________ created the commission that prescribes safety standards for products.
A) Consumer Product Safety Act
B) Patent and Trademark Office
C) Sarbanes-Oxley Act
D) U.S. Labor Department

Answer: A
Difficulty: 1 Easy
Learning Objective: 06-08 To illustrate important issues related to contracts, insurance, and
product safety and liability.
Accessibility: Keyboard Navigation

66) What type of insurance is mandatory in some states?


A) Property
B) Bonding
C) Life
D) Workers' Compensation

Answer: D
Difficulty: 2 Medium
Learning Objective: 06-08 To illustrate important issues related to contracts, insurance, and
product safety and liability.
Accessibility: Keyboard Navigation

16
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
67) What type of insurance would cover fire or burglary damage?
A) Property
B) Bonding
C) Life
D) Workers' Compensation

Answer: A
Difficulty: 1 Easy
Learning Objective: 06-08 To illustrate important issues related to contracts, insurance, and
product safety and liability.
Accessibility: Keyboard Navigation

68) Which of the following is true regarding the Sarbanes-Oxley Act?


A) It only applies to companies that make over $10 million in gross revenue.
B) Private companies are not included in this act.
C) The act does not cover fraud via TV or radio.
D) The act only covers a narrow range of corporate governance activity.

Answer: B
Difficulty: 2 Medium
Learning Objective: 06-07 To recognize the implications of new legislation that affects the
board of directors and internal auditing processes for public companies.
Accessibility: Keyboard Navigation

69) Which of the following is not a condition that makes a contract legally enforceable?
A) Consideration is given by both parties
B) All parties involved are competent
C) Money is exchanged for products/services
D) Acceptance of the offer must be voluntary

Answer: C
Difficulty: 2 Medium
Learning Objective: 06-08 To illustrate important issues related to contracts, insurance, and
product safety and liability.
Accessibility: Keyboard Navigation

17
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
70) What type of agreement must always be in writing in order to be a legally binding contract?
A) Client
B) Distributor
C) Supplier
D) Real estate

Answer: D
Difficulty: 2 Medium
Learning Objective: 06-08 To illustrate important issues related to contracts, insurance, and
product safety and liability.
Accessibility: Keyboard Navigation

71) The courts consider oral agreements under $500 binding if:
A) the agreement is for less than one year.
B) the parties have previously done business together.
C) the transaction is for services rendered.
D) the new venture is incorporated.

Answer: A
Difficulty: 2 Medium
Learning Objective: 06-08 To illustrate important issues related to contracts, insurance, and
product safety and liability.
Accessibility: Keyboard Navigation

72) Define a trade secret and briefly discuss a noncompetition agreement.

Answer: Trade secret means protection against others revealing or disclosing information that
could be damaging to business. In certain instances, the entrepreneur may prefer to maintain an
idea or process as confidential and to sell or license it as a trade secret. The trade secret will have
a life as long as the idea or process remains a secret.

Noncompete agreements are documents that are prepared by an employer and signed by an
employee in order for the company to protect valuable assets ranging from product information,
to marketing ideas, and unique strategies. Historically, noncompete agreements have not been
very successful in courts. Well-written agreements will hold up in court if they are fair to all
parties and have a reasonable duration and geographic coverage.
Difficulty: 2 Medium
Learning Objective: 06-05 To identify procedures that can protect a ventures trade secrets.
Accessibility: Keyboard Navigation

18
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
73) Identify and describe the three different types of patents.

Answer: Utility patent—Most popular type, 20-year term. A utility patent basically grants the
owner protection from anyone else making, using, and/or selling the identified invention and
generally reflects protection of new, useful, and unobvious processes.

Design patent—Covering new, original, ornamental, and unobvious designs for articles of
manufacture, a design patent reflects the appearance of an object. These patents are granted for a
14-year term and, like the utility patent, provide the inventor with a negative right excluding
others from making, using, or selling an article having the ornamental appearance given in the
drawings included in the patent.

Plant Patents—These are issued under the same provisions as utility patents and are for new
varieties of plants. These patents represent a limited area of interest, and thus very few of these
types of patents are issued.
Difficulty: 2 Medium
Learning Objective: 06-02 To understand the nature of patents, the rights they provide, and the
filing process.
Accessibility: Keyboard Navigation

74) Licensing has significant value as a marketing strategy to holders of patents, trademarks, or
copyrights. Describe licensing agreements in each of the three intellectual property facets:
patents, trademarks, and copyright.

Answer: A patent license agreement specifies how the licensee would have access to the patent.
For example, the licensor may still manufacture the product but give the licensee the rights to
market it under their label in a competitive market. This agreement must be carefully worded and
should involve a lawyer, to ensure the protection of all parties.

Licensing a trademark generally involves a franchising agreement. The entrepreneur operates a


business using the trademark and agrees to pay a fixed sum for use of the trademark, pay a
royalty based on sales volume, buy supplies from the franchisor, or some combination of these.

Copyrights are another popular licensed property. Computer games have been designed using
licenses from arcade games, movies and television shows. Celebrities will often license the right
to use their name, likeness, image, or name in a product.
Difficulty: 2 Medium
Learning Objective: 06-04 To learn the purpose of a copyright and how to file for one.
Accessibility: Keyboard Navigation

19
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
75) What are the main benefits of a registered trademark?

Answer:
• It provides notice to everyone that you have exclusive rights to the use of the
mark throughout the territorial limits of the United States.
• It entitles you to sue in federal court for trademark infringement, which can result
in recovery of profits, damages, and costs.
• It establishes incontestable rights regarding the commercial use of the mark.
• It establishes the right to deposit registration with customs to prevent importation
of goods with a similar mark.
• It entitles you to use the notice of registration (®).
• It provides a basis for filing trademark application in foreign countries.
Difficulty: 2 Medium
Learning Objective: 06-03 To understand the purpose of a trademark and the procedure for
filing.
Accessibility: Keyboard Navigation

76) Explain what makes a contract legally enforceable.

Answer:
• An offer is made. It can be oral or written but is not binding until voluntary
acceptance of offer is given.
• Voluntary acceptance of offer.
• Consideration (something of value) is given by both parties.
• Both parties are competent and/or have the right to negotiate for their firms.
• Contract must be legal. Any illegal activities under a contract are not binding. An
example might be gambling.
• Any sales of $500 or more must be in writing (all real estate deals need to be in
writing).
Difficulty: 2 Medium
Learning Objective: 06-08 To illustrate important issues related to contracts, insurance, and
product safety and liability.
Accessibility: Keyboard Navigation

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written consent of McGraw-Hill Education.
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certainly hundreds of God's children with them who, however,
through fear are the Beast's, and are forced to act with them,
but God knows all hearts. We did not seek to spill the blood
which lies strewn upon the earth, as we conceded nearly all
our rights; but when they wanted to murder us, we could not
give way any more. How did it fare with Ahab? The mighty foe
came on to the walls of the city, and they lost heart. Then
the prophet of God came and said, Fear nothing. Then God
arose, and in that God we must put our trust, because He is
the same God. Let us not, therefore, live as if no God
existed; He reigns. In the beginning was the Word, and the
Word was God, and the Word became flesh and lived amongst us.
Look at history, it must be an example to us. He is still the
same God who led out Israel and hardened the heart of Pharaoh
to the end, until finally all the first-born of the Egyptians
died, whereupon Pharaoh allowed the Israelites to go. He is
still the same God who calmed the winds and storms on the sea,
and His arm is not shortened. Some ask, 'Does not this only
have reference to the Church in the two Republics?' No. See
the three youths in the burning oven. Did these rejoice alone?
No; but God's people of the whole earth. Was it solitary for
Daniel in the lions' den? No, but all Christians on the whole
earth rejoiced. So the Lord often chooses a small body to whom
He shows His miracles as an example for the whole Christian
world. Look upon the blood which has been spilt upon this
earth. Who is the cause of it? We have wanted peace and our
freedom since 1836, and the Lord has given it us, and will the
Lord ever give anything and then withdraw? No. But let us
humble ourselves before the Lord. There is no doubt about it
that eventually the Lord will lead us to victory. The day of
grace is not far from His people. Do not let us doubt but
remain true to God's word and fight in His name. When the cup
of humiliation is brought to our lips and we earnestly humble
ourselves before the Lord, then the day of grace has arrived.
Let each one then acknowledge that it is the hand of God which
makes us free and nothing else, then we shall not boast. Yet He
uses man as His instrument.

"I have laid my address before you, and I hope that the Raad
will not sit over it longer than to-morrow morning. There are
several members of the Raad who are burghers or military
officers in the field, so there will be no time to treat
ordinary subjects. I trust that you will only treat such
subjects as I lay before you. I have appointed an acting
Commandant General since I have lost my right-hand man,
although I do not infer that I have not more such men. The
late most noble Commandant General, Messrs. Kock and
Wolmarans, members of the executive council, are lost to me.
The State Secretary is a newly appointed one, and I am the
only one remaining of the old members of the executive
council, yet I have experienced much assistance and support
from the present members, and God will also support us. The
Lord is still our Commander-in-Chief; He gives orders and He
knows when to say, 'Thus far and no further.' It is surprising
how other Powers are unanimously with us and how the whole of
Europe prays for us, and will the Lord lend a deaf ear to
these prayers? Oh, no! Trust in the Lord and let us stand by
Him, and He will perform miracles. Even if I have to go to St.
Helena, the Lord will bring His people back and make them free,
and the same judgment will fall on the present Babylon, the
cause of all the spilt blood. We fight for the freedom which
God granted to us. I say again, should any brothers from this
Raad and private persons fall by the sword, they fought in the
name of the Lord and believed, and they, so says the word of
the Lord, are sacrificed on the altar for the glorification of
His name and of the glorious Church, which, at this time, is to
be revealed. The Church must be tried and purified, and that
is why I cannot see that this extraordinary war will be
allowed to destroy us. This war will be continued until the
Lord says, 'Thus far and no further,' remain at that, abide by
that, and fight with me. I give myself in the hands of the
Lord, whatever He has destined for me, I shall kiss His rod
with which He chastizes me because I am also guilty. Let
everyone humble himself before the Lord, I have said."

SOUTH AFRICA: Orange Free State: A. D. 1900 (May).


Annexation by proclamation of Lord Roberts to the
Dominions of the Queen.

"In view of Lord Robert's opinion that early annexation would


tend towards the pacification of the country, by removing a
feeling of uncertainty as to the return of President Steyn's
government," the following commission by the Queen to Lord
Roberts was issued on the 21st of May:

"Victoria R. I., by the Grace of God of the United Kingdom of


Great Britain and Ireland Queen, Defender of the Faith,
Empress of India: To Our Right Trusty and Well-beloved
Councillor Frederick Sleigh, Baron Roberts of Kandahar, Field
Marshal of Our Forces, Knight of Our Most Illustrious Order of
Saint Patrick, Knight Grand Cross of Our Most Honourable Order
of the Bath, Knight Grand Commander of Our Most Exalted Order
of the Star of India, Knight Grand Commander of Our Most
Eminent Order of the Indian Empire, upon whom We have
conferred the Decoration of the Victoria Cross. Greeting:
Whereas the territories in South Africa heretofore known as
the Orange Free State have been conquered by Our forces, And
whereas it is expedient that such territories should be
annexed to and should henceforth form part of Our Dominions:
Now know you that We, reposing especial trust and confidence
in you the said Frederick Sleigh, Baron Roberts of Kandahar,
do hereby authorize and empower you in Our name to annex the
said territories and to declare that the said territories
shall henceforth form part of Our Dominions.
{502}
And We do hereby constitute and appoint you to be thereupon
Administrator of the said territories provisionally and until
Our pleasure is more fully known. And We do authorize and
empower you as such Administrator to take all such measures,
and to make and enforce such laws as you may deem necessary
for the peace, order, and good government of the said
territories. And we do strictly charge and command all Our
officers, civil and military, and all other Our faithful
subjects, that in their several places, and according to their
respective opportunities, they do aid and assist you in the
execution of this Our Commission, and for so doing this shall
be your Warrant. Given at Our Court at St. James's, this 21st
day of May, One thousand nine hundred, in the Sixty-third Year
of Our Reign." The commission was executed by a public reading
of the proclamation of Lord Roberts at Bloemfontein on the
24th of May.

Great Britain, Papers by Command: 1900,


Cd. 261, pages 136, 144.

A counter-proclamation, referring to that of the British


commander, was issued by President Steyn, from Reitz, on the
11th of June, declaring: "Whereas an unjust war was forced on
the people of the Orange Free State and of the South African
Republic by Great Britain in the month of October 1899, and
whereas these two small Republics have maintained the unequal
struggle with the powerful British Empire for more than eight
months and still maintain it; … Whereas the forces of the
Orange Free State are still in the field and the Orange Free
State has not been conquered and whereas the aforesaid
proclamation is thus in contradiction with International Law;
Whereas the independence of the Orange Free State has been
acknowledged by nearly all the civilised Powers; Whereas it is
notorious that the British authorities have lately recognised
that the Orange Free State is governed in an exemplary manner,
and that it is both a violation of the laws of civilization
and a denial of the fundamental rights of such people to rob
it on what a pretence soever, of its freedom, and whereas I
consider it desirable to make known to all whom it may concern
that the aforesaid Proclamation is not recognised by the
Government and the people of the Orange Free State; So,
therefore, I, M. T. Steyn, State President of the Orange Free
State, in consultation with the Executive Council, and in the
name of the independent people of the Orange Free State, do
hereby proclaim that the aforesaid annexation is not
recognised and is hereby declared to be null and of no avail.
The people of the Orange Free State is and remains a free and
independent people, and refuses to submit to British rule."

Great Britain, Papers by Command:


Cd. 261, 1900, page 155.

SOUTH AFRICA: Cape Colony: A. D. 1900 (May).


Opposition of Cape Colony Afrikanders to the annexation
of the Republics.

A "People's Congress" of the Afrikanders, or Bondmen, of Cape


Colony, was held at Graaff-Reinet, on the 30th of May, to
protest against the annexation of the Boer Republics. The
following resolution was adopted by acclamation: "Whereas,
were the Republics to be annexed the majority of Cape
Colonists would feel themselves bound morally to work
unceasingly by every right and lawful means for the
restoration of independence to the Republics, and to make that
end their first political object; And whereas from our
knowledge of the history and character of the Republics we are
convinced they would never become the willing subjects of the
Empire, but would seize any and every opportunity which might
offer itself to recover their independence, possibly by force
of arms, once they were to be deprived of it; And whereas
instead of the annexation of the Republics tending to promote
the welfare of their people, as has been claimed, it would, if
successfully maintained for any long period, tend to degrade
those people and their offsprings, seeing that the servitude
of a self-governing State is as demoralising to its people as
the more direct form of personal slavery; And whereas, as the
annexation of the Republics by Great Britain would be as great
a wrong morally as the theft by a rich man of a poor man's
hard-earned savings; On that general ground alone it is not
believable that permanent good could result from such a
policy. Therefore be it resolved now that we, on behalf of the
majority of Cape Colonists, do hereby declare our solemn and
profound conviction that the annexation of the two South
African Republics would be disastrous to the peace and welfare
of South Africa and of the Empire as a whole." Also the
following: "Be it resolved that it is the opinion of the
people in Congress here assembled that a settlement of the
South African question on the following basis would prove a
blessing to South Africa and the Empire, namely, that the two
Republics should have their unqualified independence; that the
Colonies should have the right to enter into treaties of
obligatory arbitration with the Republics for the settlement
of all disputes affecting the internal affairs of the South
African Continent, and that this colony, and any other colony
so deserving it, should have a voice in the selection of its
Governors. Be it further resolved that a settlement on the
above basis would make the majority of the people who have
made South Africa their home the warm friends and staunch
allies of the British Empire, and that in no other way known
to us can that end now be attained."

In transmitting a report of this meeting to Secretary


Chamberlain, the High Commissioner, Sir Alfred Milner, wrote:
"I do not myself take a very gloomy view of the prospect of
racial relations in the Colony, much less in South Africa
generally. If it is true, as the conciliators are never tired
of threatening us, that race hatred will be eternal, why
should they make such furious efforts to keep it up at the
present moment? The very vehemence of their declarations that
the Africanders will never forgive, nor forget, nor acquiesce,
seems to me to indicate a considerable and well-justified
anxiety on their part lest these terrible things should after
all happen."

Great Britain, Papers by Command:


July, 1900, South Africa, Cd. 261, pages 182-188.

{503}

SOUTH AFRICA: The Field of War: A. D. 1900 (May-June).


The British invasion of the Transvaal.
Occupation of Johannesburg and Pretoria.
Expulsion of the Boers from Natal.
Discussion of terms of surrender.

On the 22d of May, Lord Roberts resumed his forward movement


from Kroonstad, with a strong column of cavalry, under General
French, in advance on the west, and another, of mounted
infantry, under General Ian Hamilton, on the east. The Boers,
under General Botha, had prepared defensive works on the
Rhenoster River, but were too much endangered by the flanking
column of General Hamilton to make a stand there, and fell
back. Again at the Vaal River, their fortifications were
untenable, as against an invasion of such numbers, with so
large a mounted force. With little resistance the British army
crossed the Vaal on the 26th and 27th and entered the
territory of the South African Republic. On the 30th it was
before Johannesburg, and the town was surrendered on the
following day. Thence the invading force moved upon Pretoria,
meeting some opposition, but evidently none that was hopefully
made, and the capital was surrendered unconditionally to Lord
Roberts on the 5th of June. President Kruger and the officials
of his government had left the town, with their archives and
their treasure, and movable offices had been prepared for them
in railway cars, which were transferred for the time being to
Machadodorp, at some distance eastward. Most of the armed
burghers had escaped from the town, and they had been able to
remove about 900 of their British prisoners; but a large
number of the latter were set free. General Botha gathered up
his broken and discouraged forces and intrenched them in a
strong position on the Lorenzo Marquez railway, only 15 miles
eastward from Pretoria. Lord Roberts moved against him on the
11th and compelled him to retreat, after hard fighting for
five hours. This ended important operations in that part of
the field.

In Natal, General Buller, since early in May, had been pushing


his army northward, in a movement co-operative with that of
Lord Roberts. He had turned the flank of the Boer forces in
the positions they had fortified against his advance, regained
Glencoe and Dundee, and moved on to Newcastle. Then, with more
serious fighting, he forced Botha's Pass through the
mountains, compelled the Boers to evacuate their strongholds
on Laing's Nek and Majuba Hill, and was substantially in
possession of Natal.

On the 30th of May, General Buller sent word to General Chris


Botha that Lord Roberts had crossed the Vaal, and suggested
surrender, further resistance appearing useless. This led to a
meeting of the opposed commanders, at which Botha asked what
terms Lord Roberts would offer. Buller immediately referred
the question to Lord Roberts, saying: "Can you let me know
your terms of peace for individual and separate commandos? … I
think they are inclined to give in, and that I have in front
of me about half the Transvaal forces now in the field. If you
think it worth while please let me know if I may mention any
terms of peace to them. I think, even if assisted from the
Orange Free State, it will cost me about 500 men killed and
wounded to get out of Natal." The reply of Lord Roberts, dated
June 3, 1900, was as follows: "Your telegram of yesterday. My
terms with the Transvaal Government are unconditional
surrender. With regard to troops, those who deliver up their
arms and riding animals are allowed to go to their homes on
signing pledge that they will not fight again during present
war. The exceptions to this rule are those who have commanded
portions of the Republican forces, or who have taken an active
part in the policy which brought about the war, or who have
been guilty of or been parties to wanton destruction of
property, or guilty of acts contrary to the usages of
civilized warfare. Principal officers should remain with you
on parole until you receive instructions regarding their
disposal." General Botha declined the terms.

Nine days later (June 12) Lord Roberts opened correspondence


on the same subject with General Louis Botha, Acting
Commandant-General of the Boer forces, endeavoring to persuade
him, "in the cause of humanity, to refrain from further
resistance." The Commandant-General wrote in return: "For the
purpose of arriving at a decision, it is not only absolutely
necessary for me to call a General Council of War of my
Officers and to consult them, but above all it is necessary
for me to consider the subject with my Government. I trust
that for the sake of humanity your Excellency will give me the
opportunity for such consideration and consultation. As some
of my Officers are near the Natal Border, and I am also a long
way separate from my Government, this will require some time.
I ask your Excellency kindly, therefore, for an armistice for
six days, beginning from to-morrow morning at sunrise, during
which time no forward movement will be made on either side
within the territory of the South African Republic."

Lord Roberts replied: "I am anxious to meet your wishes and to


enable your Honour to communicate with the Government of the
South African Republic, but as the movement of my troops in
that Republic are intimately connected with operations in
progress in other parts of South Africa, it is impossible for
me to accede to your Honour's request that there should be an
armistice for 6 days, during which time no forward movement
will be made on either side within the territory of the South
African Republic. I am willing, however, to refrain from
making further movements in the district to the east of the
Elands River Railway Station, our present most advanced post
in that direction, and also in the district north of the
Volksrust and Johannesburg Railway, for a period of five (5)
days, commencing at dawn on the 15th June, on the condition
that no movement westward or southward is made by the Army of
the South African Republic during that same period. This will,
I trust, give your Honour the opportunity you desire of
consulting your Officers and conferring with your Government,
and I sincerely hope that the result will be of such a
satisfactory nature as to prevent further unnecessary loss of
life."

The proposal was declined by General Botha, in the following


note (June 15): "In answer to your letter, dated 14th June,
just received by me, wherein your Excellency consents to an
armistice for five days, but with the reservation of the right
to your Excellency to move your Army in all directions within
the South African Republic, except cast of Elands River
Station and north of the Volksrust-Johannesburg Railway line,
I must, to my great regret, inform your Excellency that this
reservation makes it impossible for me to accept this
armistice, which I have so much desired."

{504}

SOUTH AFRICA: The Field of War: A. D. 1900 (June-December).


Continued resistance of the Boers in guerilla warfare.
An outline of the events of seven months.
A British view of the later situation.

"After the occupation of Pretoria, exhaustion of the mounted


forces and of the transport again supervened and Lord Roberts
was preoccupied with the double task of bringing up large
numbers of horses and masses of stores by a railway exposed to
attack along a distance of 290 miles, and at the same time of
dealing, as best he could, with scattered bodies of the enemy,
nowhere formidable in a military sense, but capable of much
mischief. The period beginning with the occupation of
Bloemfontein, during which the Boers developed and maintained
warfare of guerilla type, imposed highly responsible duties
upon British officers in charge of scattered posts and
convoys. In some cases those duties were not adequately
discharged, and for a time the defences of the important line
of communications appeared to be somewhat imperfectly
organized and supervised. There were signs of the tendency to
relax precautions after a conspicuous success, which has been
shown by British armies on other occasions. It was clear that
the main centre of Boer activity was in the Bethlehem
district, and at the end of June Lord Roberts despatched a
strong column south under Lieutenant-General Hunter to
co-operate with Major-Generals MacDonald, Clements, and Paget
from the west. Bethlehem was captured on July 7, and by the
end of the month Commandant Prinsloo, caught in the Brandwater
Basin between the forces of Lieutenant-Generals Hunter and
Rundle, surrendered with more than 4,000 men and a large
number of horses and wagons. … Meanwhile, Lord Roberts, who
had driven back the Boers along the Lorenzo Marques line, in
two actions near Eerste Fabrieken, on June 11 and 12, began an
advance eastward on July 23, and on August 7 Sir R. Buller
moved northwards from Paarde Kop. On August 25 the
Commander-in-Chief met Sir R. Buller and Generals French and
Pole-Carew at Belfast, and after the fighting of the 27th the
resistance of the Boers in this district practically
collapsed. Starting from Machadodorp on September 1, Sir R.
Buller moved slowly towards Spitzkop, driving the enemy before
him through a difficult mountainous region, and General French
pressed on to Barberton, which was occupied on the 13th
without opposition. On the 24th the Guards reached Komati
Poort. The rugged hill country east of Belfast offered great
opportunities for the tactics in which the Boers appeared to
excel; but the 'natural fortress surrounded by a glacis of
about 1,500 yards absolutely without cover' near Bergendal
Farm was not defended with the tenacity shown on previous
occasions, and the subsequent British advance led to a
wholesale destruction of artillery material and to the
surrender of some 3,000 men to the Portuguese. This, the third
great disaster which has befallen the Boers, left them without
any centre of resistance or any considerable gathering of
fighting men.

"Before the outbreak of war we estimated their available


strength at about 45,000, to which must be added some 10,000
colonial rebels and perhaps 5,000 mercenaries. It is doubtful
whether the force actually in the field at any one time
reached 45,000, and the total loss in killed, wounded and
prisoners, cannot be much less than 30,000. … Exhaustion of
supplies and of ammunition must soon begin to tell heavily
upon the Boers; but it cannot be said that they have at
present given evidence of personal demoralization.
Comparatively small bodies, lightly equipped, still hold the
field and show much activity over a wide area. It is
impossible to provide British garrisons for every town and
village, and wherever the roving bands of the enemy appear
there is a recrudescence of local hostility, even in districts
which have been apparently tranquil for months. Large mobile
columns are employed in pursuit, but the Boers carefully avoid
general engagements and attack only when there appears to be a
chance of surprising and overpowering small detachments. …
Mounted forces, marching as light as possible and capably
commanded, are the principal requirements of the situation. It
is necessary to give the roving commandos no rest and to make
every effort to capture their leaders. The work is not easy,
and it requires great energy and sound military judgment; but
it will be successfully accomplished, and the scale of the
operations will steadily dwindle into measures of police.
Meanwhile a gradual withdrawal of troops from South Africa is
taking place, and progress is doubtless being made with the
new organization under Lieutenant-General Baden-Powell, which
will be specially fitted for the work that now lies before us.

"The total casualties of the war up to the 31st ult. are
estimated at about 46,000, and 'the reduction of the military
forces' due to a campaign of more than a year is returned at
12,769, of which total 11,739 are accounted for by death,
including 6,482 victims to disease. It is impossible to rank
the Boer war among the great campaigns of the British Army;
but the peculiar difficulties must never be forgotten. The
closest parallel is probably that of the American Civil war,
in which an armed people long resisted far superior forces and
carried invasion into the territory of the stronger Power. The
military potentiality of the Southern States was at first as
little realized in Washington as was that of the Boers in
London, and disasters therefore resulted. In both cases the
issue was certain as soon as adequate force in strong hands
was available. The Southern leaders, like the Boers, hoped and
strove for foreign intervention in vain; but the former were
far less prepared for war than the latter. On the other hand
the Boers, though ably led in a limited sense, have produced
no commanders with a genius for war comparable to that of Lee
and of Jackson, nor have they shown the discipline and the
cohesion which characterized the Southern armies when at their
best. Desultory and irregular warfare may still be prolonged
for a time; great activity and ample vigilance will still be
required."

London Times,
November 5, 1900.

At the end of the year the "Times" summed up the later


features of the situation as follows: "The spirit of the Boers
remained unbroken, and small mobile commandos, scattered over
the vast area of the countries which we had undertaken to
occupy, perfectly familiar with the ground, and in close touch
with the civil population, have succeeded up to the present
time in making the task of the British Generals one of extreme
difficulty. The Boer resistance has centered chiefly in three
men, Commandants Louis Botha in the northeast, Delarey to the
west of Pretoria, and De Wet in the Orange Free State. The
first, who since the death of General Joubert, was in chief
command in Natal, and afterwards in the Eastern Transvaal, has
not been conspicuously active since September, but the other two
have achieved a great deal with their very limited resources,
and have earned enduring fame as guerrilla
chieftains.
{505}
De Wet, especially, after having been 'routed' and
'surrounded' times without number, has succeeded in giving
occupation to several British Generals and their forces up to
the present time, has kept the eastern part of the Orange
Colony in a continual ferment, and till now has defied the
energetic efforts of General Charles Knox to capture him.
Delarey, after remaining fairly quiescent for several weeks,
suddenly advanced through the Magaliesburg in the middle of
the present month with a force variously estimated at 1,500 or
3,000 men, surrounded and captured a position held by four
companies of the Northumberlands, and compelled the retreat of
General Clements and the evacuation of his camp. It is true
that these things are but the episodes of the later stages of
a war in which there will be no more great battles, but they
are exhausting, costly, and sometimes humiliating."

London Times,
December 31, 1900.

SOUTH AFRICA: The Field of War: A. D. 1900 (August-December).


Farm-burning by the British troops.

Under proclamations issued by Lord Roberts in August and


September, aimed at the suppression of irregular warfare, a
punitive policy was adopted, which included the burning of
farmhouses where guerrilla bands were sheltered, or whose
inmates acted with such bands, and which soon came to be
denounced as one of shameful barbarity. Such different
representations have been made, as to the manner in which the
orders of Lord Roberts were carried out, and as to the measure
of devastation and suffering produced, that it seems to be
impossible to judge whether the British farm-burning in the
Transvaal and Orange Free State has or has not gone beyond the
usual brutalities that belong to the very nature of war. Mr.
Kruger, in speeches made after he went to Europe, represented
it as monstrous beyond example. "The war waged against us," he
said, on landing at Marseilles, "is a war of barbarians. I
have witnessed wars of barbarians and never have I seen
committed barbarities so monstrous as those committed daily
among us. Our farms, which we had had so much difficulty to
construct, are burned. The women whose husbands are at the war
are hunted down and brutally separated from their children,
who are deprived of bread and necessaries." The Afrikanders of
Cape Colony held similar language. Men of conscience and heart
in England were troubled by such accusations. Mr. Trevelyan, M.
P., wrote to "The Times," on the 24th of November: "What so
many of us feel, in the first place, is that we are not in a
position to form a fair judgment from sheer lack of the most
elementary reliable information of what has been done and is
still doing. An officer returned from the war about two months
told me the other day that he supposed only about 40 farms had
been burnt. I read in the 'Westminster Gazette' from an
equally honourable gentleman that it would not be an
exaggeration to say that one-third of the farms in the Orange
River Colony were in ashes. Clearly it is impossible for the
nation to make out the truth when such contradictory
statements are universally current. … One thing we do know for
certain—that on September 2 Lord Roberts, regarding the war as
having degenerated into guerrilla fighting, proclaimed that
all farms would be burnt within a radius of ten miles of any
point upon the railway raided by the Boers. It is now November
24. We know that many people innocent of any dealing with De
Wet have lost all they possess owing to his misguided energy.
Has it diminished sensibly the Boer forces in the field? If
not, what is its utility? … If the resistance of the Boers is
being lessened by these destructions, let us at least have the
poor consolation of knowing it. Again, we want to know what
really happens to the women and children whom our soldiers
conduct, I believe, generally to the nearest town after their
homes have been burned. People whose property has been totally
destroyed in a country where war has stopped all industry
obviously cannot keep themselves."

When Parliament met in December the subject was brought up


there, by Mr. Trevelyan and others, and debated at length,
without much clearer light on it being found. The government
could give no definite information as to what was being done,
but stoutly upheld the course which the military leaders had
taken. Mr. Balfour said: "The ordinary laws of war as
practised by civilized countries depend essentially upon
drawing a sharp distinction between combatant and
non-combatant. The combatant has his particular privileges,
the non-combatant has his particular privileges. What has been
universally found intolerable is that a man should oscillate,
according to his convenience, from one category to the
other—be a peaceful agriculturist when it suits him and an
effective combatant when circumstances seem to be favourable.
That practice is so intolerable that I believe all nations
have laid down the severest rules for repressing it. I have in
my hands the instructions to the army of the United States in
the field, dated 1898. I should like to read to the House two
extracts from this document. Rule 52 says:— 'If a people of a
country, or any portion of same already occupied by the army,
rises against it, they are violators of the laws of war, and
are not entitled to their protection.' The 82nd rule is to the
effect that men, or squads of men, who take part in raids of
any kind without permission, and without being part or portion
of an organized hostile army, are not public enemies, and
therefore if captured are not entitled to be treated as
prisoners of war, but shall be treated as highway robbers or
pirates."
Mr. Chamberlain said: "Lord Roberts's proclamation was to the
effect that, in the first instance, general officers were
authorized to burn down farmhouses as a punishment in cases in
which they were used as fortified places or places for the
concealment of arms, or in which the white flag had been
improperly used, or where they had been the scenes of gross
treachery and of acts contrary to the laws of war. As a matter
of right and morality, the Government are prepared to sustain
Lord Roberts absolutely. … Lord Roberts was placed in the most
difficult position in which a general could possibly be
placed. He had his base 1,500 miles away at least from his
front, through a most difficult country, and he was served
only by a single line of railway, and any catastrophe to the
railway might have meant a catastrophe to the whole army. It
is all very well to talk of humanity, but you must take first
account of our own people.
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Now, Sir, it was of the first importance, it was the clear
duty of Lord Roberts, to take any steps in his power to
prevent the cutting of the line and the danger which would
thereby accrue to his force, and he accordingly issued a
proclamation that in the case of the destruction of the line
persons in the vicinity would be held responsible, and that
farmhouses in the vicinity might be destroyed. We understood
his proclamation to mean that he would require evidence of
some complicity on the part of the persons whose farmhouses
were destroyed. … We inquired the other day, when the matter
assumed greater importance, whether the construction we
placed upon the proclamation was true, and we have a reply
from Lord Kitchener, who has now taken the place of Lord
Roberts, that we are perfectly right in that assumption. …
According to the proclamation of Lord Roberts, whose humanity
is proverbial, and who therefore could not under any
circumstances be accused of unnecessary cruelty, cattle are
always to be paid for by the troops, or a receipt given,
which is as good as payment, except in those cases in which
the owner of the cattle has been guilty of acts of war or of
outrages which are punishable by all civilized nations who
are at war. Therefore the taking of cattle does not mean
necessarily that the owner of the cattle is placed in the
impossibility of continuing his occupation. If he has not got
the cattle he has got the money for them except in the cases
in which destruction has taken place as a punitive measure.
In all other cases the instructions are precise, and I
believe from all the information we have obtained from the
reports of the generals in the field they have been strictly
carried out. Never in the history of war has war been carried
out with so much humanity on the part of the officers and of
the soldiers concerned as in the present war. The honourable
member also spoke of the deportation of women. That sounds
like something serious, but I believe it will be found that
it is only for their own protection. If we are unable in this
vast country to occupy and garrison every bit of it, when our
troops are removed, if women and children are left alone they
remain there in some danger—in danger from those marauding
bands of which I have spoken and also from the vast native
population. And, Sir, this native population is answerable, I
believe, for every case of proved outrage either upon women
or children. I believe, and the last reports we have received
confirm that belief, that in no case has a British soldier
been justly accused of such an outrage."

The following proclamation, issued by Lord Roberts, November


18, seems to indicate that there had been practices in
farm-burning, before that time, which he could not approve:
"As there appears to be some misunderstanding with reference
to burning of farms and breaking of dams, Commander-in-Chief
wishes following to be lines on which General Officers
Commanding are to act:—No farm is to be burnt except for act
of treachery, or when troops have been fired on from premises,
or as punishment for breaking of telegraph or railway line, or
when they have been used as bases of operations for raids, and
then only with direct consent of General Officer Commanding,
which is to be given in writing, the mere fact of a burgher
being absent on commando is on no account to be used as reason
for burning the house. All cattle, wagons, and foodstuffs are
to be removed from all farms; if that is found to be
impossible, they are to be destroyed, whether owner be present
or not."

Great Britain, Papers by Command:


Cd. 426, 1900, page 23.

SOUTH AFRICA: Rhodesia: A. D. 1900 (September).


Protectorate over Barotsiland.

The "Cape Times" of September 19, 1900, stated that a


"Government Gazette Extraordinary" had been issued containing
an Order in Council proclaiming a protectorate over
Barotsiland—North-Western Rhodesia. "The limits of the country
included in the protectorate are the parts of Africa bounded
by the River Zambesi, the German South-West African
Protectorate, the Portuguese possessions, the Congo Free
State, and the Kafukwe or Loengi River. The Order provides
that the British South Africa Company may nominate officials
to govern the territory, and that these are to be confirmed by
the High Commissioner. The High Commissioner may, amongst
other things, from time to time by proclamation provide for
the administration of justice, the raising of revenue by the
imposition of taxes (which may include a tax in respect of the
occupation of native huts), and Customs duties or otherwise,
and generally for the peace, order, and good government of all
persons within the limits of the order, including the
prohibition and punishment of acts tending to disturb the
public peace. The expenses of the administration of this
country, if not entirely borne by the revenues of the country,
will be borne by the British South Africa Company, and if the
revenue more than meet the expenses, the excess will be paid
to the Chartered Company."

SOUTH AFRICA: The Transvaal: A. D. 1900 (September).


Leave of absence to President Kruger.
His departure for Europe.
Proclamation of Lord Roberts.

The following proclamation by the Executive Council of the


Boer government was issued from Nelspruit on the 10th of
September, 1900: "Whereas the advanced age of His Honour the
State President makes it impossible for His Honour further to
accompany the Commandos; and whereas the Executive Council is
convinced that the highly-valued services of His Honour can
still be usefully applied in the interest of Land and People,
the Executive Council hereby determines to grant His Honour
leave of absence to Europe for the period of six months, in
order still to advance our cause there, and Mr. S. W. Burger,
Vice-President, takes his place according to law.
[Signed] S. W. BURGER, Vice President.
F. W. REITZ, State Secretary."

Lord Roberts seems to have regarded the acceptance of this


"leave of absence" by President Kruger as equivalent to a
resignation of his office; for he published, on the 14th of
September, a proclamation in the following words:

"The late President, Mr. Kruger, and Mr. Reitz, with the
archives of the South African Republic, have crossed the
Portuguese frontier, and arrived at Lourenço Marques with a
view to sailing for Europe at an early date. Mr. Kruger has
formally resigned the position he held as President of the
South African Republic, thus severing his official connection
with the Transvaal. Mr. Kruger's action shows how hopeless in
his opinion is the war which has now been carried on for
nearly a year, and his desertion of the Boer cause should make
it clear to his fellow burghers that it is useless for them to
continue the struggle any longer.

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