Download Entertainment Contracts: Formation, Enforcement, and Dispute Resolution and more Exams Advanced Education in PDF only on Docsity!
MGMT 446 Exam 1 With Correct
Answers
CHAPTER 7
Contract Writing Conflicts - ANSWER 1) Interest of the artists
Interest of producers
Conflict between art & commerce
Contract Formation Difficulties - ANSWER 1) Multiple creative efforts
Second guessing
Success unpredictability
Not financially successful
Studio System - ANSWER Where hollywood movie studios control all aspects of their film productions, including production, distribution, and exhibition
Star System - ANSWER Creating, promoting, and exploiting stars in hollywood films; image emphasis
Contingent Employment - ANSWER When people are hired on a temporary or
project-basis. Their employment is dependent on the success/completion of a particular project.
Shell Game - ANSWER A key star that won't work until a particular director/co-star agrees too
Deal Memo - ANSWER Outlines the basic terms of an agreement between parties involved
Letter of Intent - ANSWER Outlines the parties intentions to enter into a future agreement
Are deal memos sufficient when material terms are defined? - ANSWER Yes
What is key to an enforceable contract? - ANSWER Intent
Subjective Intent - ANSWER The personal, internal intentions and beliefs of an individual or party entering into a contract of agreement
Objective Intent - ANSWER Focuses on the external, observable actions and words of the parties involved
- Damages
Elvin Associates v. Franklin Case - ANSWER I: Whether oral contract is enforceable
R: Promissory estoppel
A: Elvin could seek damages because she showed:
Explicit commitment
Reasonable reliance
Subsequent injury
C: Elvin wins (damages) for Franklin's absence
Consideration - ANSWER Both parties in a contract need to get something valuable in return for their promises.
How many states do not have child labor laws? - ANSWER 17
Common Law - ANSWER 1) A minor can only commit to one project at a time
Needs to provide own necessary goods
Could terminate contract at any time (disaffirm)
1927 California Law - ANSWER Once approved by the court, contracts could not be disaffirmed by the minor.
Scott Eden Mgmt vs. Kavovit - ANSWER I: Can the minor disaffirm? (this isn't a personal service contract)
R: Unjust enrichment
Kavovit receives benefit at Eden's expense
Unjust for Kavovit to retain benefit without compensating Eden.
C: Eden Mgmt wins!
Unjust Enrichment - ANSWER One benefiting unfairly at another's expense
De Havilland Vs. Warner Bros - ANSWER I: Does the 7-year rule apply to actors? When should you begin counting the 7 years?
R: Labor Code section 2855 (does she fall under "exceptional services")
A: She argues = 7 years applied since she signed her contract
They argue = she still owes 25 weeks of work
Labor Section 2855 - ANSWER Personal service contracts for entertainment professionals cannot be enforced for a period longer than 7 years
bargaining power
Material Breach - ANSWER Failure to fulfill the terms of the contract
Expectations denied
Necessary compensation
Must use best efforts
Intent
Morals Clause - ANSWER One party has to behave in a way that won't harm the reputation or image of the other party (if violated, immaterial breach)
Could immoral behavior by an actor can result in termination even WITHOUT a morals clause? - ANSWER Yes
Miss Saigon Case - ANSWER Jonathan Pryce, a Welsh WHITE caucasian actor to play the half Vietnamese & half French bar owner resulting in claims of discrimination.
Union had taken the position that not considering ethnic appropriate actors violates principles of nondiscrimination and violates multi-racial employment opportunities
Tylo Case - ANSWER - Is a material change in appearance (pregnancy) a violation of a contractual commitment or is it discrimination based on sex/gender?
- She was terminated...she was no longer dramatically believable for her role so terminated for violating the terms of her contract
- Tylo wins! Firing amounted to sex discrimination $4.9 million award.
Title 7 - ANSWER Prohibits employment discrimination based on race, color, religion, sex, or national origin
BFOQ - ANSWER Suitable defense against a discrimination charge only when age, religion, sex, or national origin is an actual qualification for performing the job
Can you use BFOQ defense on Title 7 violation based on race? - ANSWER No
Non-competition Clauses - ANSWER Aims to prevent unfair rivalry and protect interests of the party that requires the agreement. Restricts the ability of performers to produce similar works for a fixed time.
Pinnacle Books, Inc. v. Harlequin Enterprises - ANSWER - Breach of a non-compete clause by a book author of an action hero eliminating the mafia.
Buchwald v. Paramount - ANSWER This case highlighted the ongoing issue of fairness in profit calculations in the movie industry, with courts generally favoring negotiated deals over post-factum fairness assessments.
First Recoupment - ANSWER Record labels keep a portion of the money an artist earns in the future until they've paid back the advances and expenses they provided to the artist.
In re Waterson, Berlin & Snyder - ANSWER I: Does the trustee have the right to sell the copyright? And if they do, can they sell it clear of royalties?
- The court granted the composers their request, rescinding the contract and instructing the bankruptcy trustee to give the copyrights back to the composers, who had to return any advance royalties they received.
CHAPTER 9 - ANSWER
Negative Injunctions - ANSWER An order to prevent stars from walking from the project. The principal deterrent to contract jumping.
What is an alternative form of equitable relief? - ANSWER Negative Injunctions
Specific Performance - ANSWER A legal action to compel a party to carry out the terms of a contract
Lumley Case - ANSWER - Singer Johanna Wagner signs a contract to sing exclusively at the Lumley Opera House.
- She is lured away to sing for a competitor and while the court was not inclined to compel the singer to sing for Lumley, it did issue an order preventing her from singing anywhere else for the term.
To sustain an action by an employer against an employee for injunctive relief:
- ANSWER 1) Contract must be in writing
Encompass unique/extraordinary services
Conform to CP Section 3423 guarantee minimum compensation
Injunctive Relief - ANSWER Stop someone for working for someone else because they are unique
Harry Rogers Theatrical Enterprises v. Comstock - ANSWER I: Injunctive enforcement of personal service contracts.
R: If a performer is very unique, and breaking the contract would cause serious and hard-to-calculate harm to the employer, a court can stop the
