Copyright regarding real buisnesses

I have a question regarding seeing real businesses in games. Say for example, you where recreating a real world place such as time square in New York. Could you have signs such as yahoo and Mc Donalds? If a game studio where to release such content, what would be the legal action taken? I know books can use them so as long they don’t claim they own them or created them. How much different are games?

Yes you can use them under fair use but normally its better to not.

The issue is that it can attract a lawsuit even if the suit is without merit because there are cases where you cant. (mostly if you misrepresent a trademarked object, for example showing coke getting you drunk or high).