Business Names & Slogan Business Name & Slogan 4 — Questions and Answers
Question 1: A restaurant chain wants to expand nationally but its name is already trademarked by another restaurant in a different state with federal registration. The chain should:
- Consider rebranding or negotiating a license, since federal registration gives the other party nationwide priority (Correct answer)
- Ignore it because they registered their LLC first in their own state
- Simply add 'Inc.' to the name to make it distinct
- Use the name only in online advertising
Correct answer: Consider rebranding or negotiating a license, since federal registration gives the other party nationwide priority
Federal trademark registration confers nationwide priority, so expansion under the conflicting name risks infringement.
Question 2: Which slogan characteristic most improves recall according to marketing research?
- Brevity combined with rhythm or rhyme (Correct answer)
- Complex vocabulary that sounds premium
- Listing multiple product features
- Frequent slogan changes each quarter
Correct answer: Brevity combined with rhythm or rhyme
Short slogans with rhythmic or rhyming qualities are significantly easier for consumers to remember.
Question 3: The name 'Amazon' was chosen partly because it:
- Suggested vast scale and appeared early in alphabetical listings (Correct answer)
- Described online bookselling literally
- Was the founder's family name
- Was required by early investors
Correct answer: Suggested vast scale and appeared early in alphabetical listings
Jeff Bezos picked 'Amazon' to evoke the world's largest river and to rank early in alphabetical directories.
Question 4: What is 'trademark dilution' in the context of famous business names?
- Weakening a famous mark's distinctiveness even without customer confusion (Correct answer)
- Selling a trademark at a reduced price
- Using a trademark in too many advertisements
- Registering a mark in multiple classes
Correct answer: Weakening a famous mark's distinctiveness even without customer confusion
Dilution harms a famous mark's uniqueness through blurring or tarnishment, even absent consumer confusion.
Question 5: A business testing name candidates with focus groups should primarily measure:
- Memorability, pronunciation ease, and the associations the name evokes (Correct answer)
- Whether participants like the CEO
- How long the name takes to write by hand
- Whether the name contains exactly two syllables
Correct answer: Memorability, pronunciation ease, and the associations the name evokes
Effective name testing evaluates recall, ease of saying the name, and the emotional or conceptual associations it triggers.
Question 6: Why did 'Dunkin' Donuts' shorten its name to 'Dunkin'' in 2019?
- To reposition the brand beyond donuts toward beverages and broader offerings (Correct answer)
- To reduce trademark renewal fees
- Because the original name was legally challenged
- To comply with FDA labeling rules
Correct answer: To reposition the brand beyond donuts toward beverages and broader offerings
The rebrand signaled a menu strategy centered on coffee and drinks rather than only donuts.
Question 7: An edge case: a founder wants to use her own surname, which matches a famous existing brand. What is true?
- Using one's own name can still constitute infringement if it causes consumer confusion (Correct answer)
- Personal surnames can always be used freely in business
- Surnames automatically receive the strongest trademark protection
- The famous brand must pay her for the rights
Correct answer: Using one's own name can still constitute infringement if it causes consumer confusion
Courts can restrict commercial use of even one's own surname when it creates a likelihood of confusion with an established mark.
A restaurant chain wants to expand nationally but its name is already trademarked by another restaurant in a different state with federal registration.
The chain should: