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Music Business
Contract Negotiation
89
Music
Undergraduate 2
03/04/2009

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Cards

Term
Freedom of Speech
Definition

-Not absolute

-Varied levels of protection for different types of speech.

Term
Types of Speech
Definition

-Pure

Written or spoken word

-Symbolic

Intend to send a particular message

Likely to be understood by audience

Term
Types of Restrictions
Definition

-Content Based

What is said is restricted

-Content Neutral

Speech restricted without regard to content

TIME, PLACE and MANNER restrictions

Term
Fighting Words
Definition
Words which by their very utterance inflict injury or tend to incite an immediate breach of the peace.
Term
Incitement
Definition
Fighting Words & Hate Words
Term
Obscenity
Definition
Obscene speech is unprotected and may even result in criminal penalties
Term
Who was the first to face charges relating to album content?
Definition
Jello Biafra, the lead singer of the Dead Kennedys.
Term
What does PMRC mean?
Definition
Parents' Music Resource Center
Term
Parents' Music Resource Center
Definition
Formed in 1985 by Tipper Gore and three other "Washington Wives"
Term
Indecency
Definition
Material is indecent if, in context, it depicts or describes sexual or excretory organs or activities in terms patently offensive as measured by contemporary community standards.
Term
Safe Harbor
Definition

-The hours between 10pm and 6am have been designated a "safe harbor"

-During this time, a radio station may broadcast indecent or profane material

-Safe Harbor NEVER applies to obscene material

Term
The FCC
Definition

-Administrative body which reports to Congress

-Regulates interstate and international communication by radio, wire, television, satellite and cable

Term
FCC Enforcement
Definition

-Civil Penalty

Revoke or deny reissue of licneses

Fine of up to $350,000

-Criminal Penalty

Fine and/or up to 2 years imprisonment

Term
First Amendment Protections
Definition

-Freedom of speech comes into play in civil suits as well

-Limits claims of International Infliction of Emotional Distress

Term
Defamation
Definition

-Private Persons

Publication of a false statement of fact which harms their reputation

-Public Figures

Knowledge that the statement was fasle; or

reckless disregard for the truth

Term
Content Neutral Restrictions
Definition

-Speech regulated without regard to content

TIME, PLACE or MANNER restrictions

-Valid so long as:

Gov't has a legitamte, content neutral interest; and

means are no broader than necessary

Term
Sole Proprietor
Definition

-One person who begins doing business

-Personally liable for all actions of the company

-Independent Contractor- 1099 forms for taxes

Term
Partnership
Definition

-Two or more people engaged in business

-Without an agreement- equal share of responsibility, profit and debt

-With an agreement- share determined by the terms of the agreement

-1065 Form for taxes, partners receive a K-I to show their share of the profits or losses

Term
What should a Company Agreement cover?
Definition

-Ownership of assets (physical and intellectual property)

-Rights within the company (hire, fire, sign contracts, etc.)

-Dictates what happens in the event of dissolution, death or incapacity

Term

Limited Partnership

(General Partners)

Definition
Run the business, personally responsible for liabilities.
Term

Limited Partnership

(Limited Partners)

Definition
Invest in comapny, but have little or no control over the business. If they exercise control, they automatically become general partners.
Term
Limited Liability Company
Definition

-Easy to form- file with the Secretary of State

-Owners are "Members," and all have limited liability

-File 1065 form and K-I forms

Term
Corporation
Definition

-Complicated to form and maintain

-Owners are stockholders

_run by the Board of Directors, who are voted in by stockholders

-Limited liability for executives, no liability for stockholders

Term
S-Corporation
Definition

-"Small" corporation

-Owners are shareholders- maximum 100 in FL

-Limited liability for executives, no liability for shareholders

_more requirements than an LLC, but less than a C-Corp

Term
Loan Corporations
Definition

-Formed by talent to employ their services

-Corporations loan talent services to other companies

-Payment made to loanout company

Term
Who is an employee?
Definition
Master/Servant
Term
Borrowed Servant
Definition
Regarded as acting for the borrowing master, lending master not liable for servant's acts.
Term
Tort
Definition
A civil wrong for which one may be held liable
Term
Negligence
Definition
Failure to do what what the reasonable person would do.
Term
Intentional Torts
Definition

A civil wrong resulting from an intentional act.

It is the act that is intentional, not the harm

Term
Assault
Definition
Putting a person in fear of imminent bodily harm
Term
Battery
Definition
An intentional and harmful touching of another's person without consent
Term
False Imprisonment
Definition
Intentionally confining a person against their will, leaving no reasonable escape and lacking in legal authority
Term

Trespass

(To Land)

Definition
Entering onto another person's property without consent or privilege
Term

Trespass

(To Chattel)

Definition
Interfering with or temorarily depriving another of their property, and causing little or no damage to such property
Term
Conversion
Definition
A prolonged or permanent interference with another's property which seriously deprives them of the value of the property
Term
Fraud
Definition

-Knowing misrepresentation

-Intent to defraud

-Justifiable reliance

-Damages

Term
Fiduciary Duty
Definition

Must act in the best interest of another

Arises automatically

Term
Ratification
Definition
Once and act has been ratified, the employer may not escape liability by denying the agency relationship.
Term
Purpose fo Antitrust laws
Definition

To protect the economy and ensure competition

-Prevent restarints on trade

-Prevent monopolies

The purpose is to protect COMPETITION, not consumers

Term
Why does market place competition need protection?
Definition
Stimulates innovation & efficient methods of protection
Term
Where do antitrust laws apply?
Definition
The antitrust laws apply to virtually all industries and to every level of business.
Term
Sherman act of 1890
Definition

Unreasonable restraints on trade

Monopolization of entire industries

Term
Clayton act of 1914
Definition
Outlawed mergers that lesson competition
Term
Monopolization
Definition

1. Intent to control prices or destroy competition

2. Predatory or anticompetitive conduct

3. "dangerous probability of success" in achieving monopoly

Term
Noncompetition Agreement
Definition
Agree not to sell competing products or services
Term
Tying
Definition
Product sold only with another product
Term
Grant-back Guarantee
Definition
Requires licensee to turn over any improvements made to a technology they licensed
Term
Price Fixing
Definition
Competitiors agree to set the same price
Term
Customer Allocation Agreement
Definition
Divide up customers to reduce or eliminate competition (by geographic area or otherwise)
Term
Bid Rigging
Definition
Conspiring to affect the outcome of bidding
Term
The Telecommunications Act of 1996
Definition
Big companies were allowed to buy TV and radio stations nationwide.
Term
Payola
Definition
The act of bribing radio stations in exchange for increased airplay of certain artists or songs.
Term
Pay For Play
Definition
Not illegal so long as listeners are told about the arrangement
Term
BATNA
Definition
Best Alternative To Negotiated Agreement
Term
Goals of Negotiation
Definition

Produce a wise agreement

Improve the relationship

Term
A wise agreement
Definition

Meets legitimate interests

Resolves conflict fairly

Durable

Term
Principled Negotiations
Definition
A better way of reaching a wise agreemnt
Term
80/20 Rule
Definition
Spend 80% of the time listening and 20% talking
Term
Elements of a valid contract
Definition

1. Unambiguous

2. Consideration

3. Capacity: Age, Mental Ability, Authority

4. No illegal Acts

5. Mutual Agreement

Term
Oral Contracts
Definition
Most are valid, but often unwise
Term
Statute of Frauds
Definition
This covers areas which have been traditionally subject to fraud
Term
6 rules for Statute of Frauds
Definition

1.Cannot be performed within one year

2. Concerning interest in realty

3. In consideration of marriage

4. Assuming the debt of another

5. Sales of goods over $500

6. Assignment of copyright

Term
Offer
Definition

-Offeror is the master of the bargain

-May require acceptance to take a certain form

Term
Acceptance: Mailbox Rule
Definition
Acceptance is effective (and offer cannot be withdrawn) once it has been mailed. This may be negated by the terms of the offer.
Term
Acceptance: Mirror Image Rule
Definition

Acceptance must be unconditional and must not change, add to, or qualify the terms of the offer.

Otherwise its a counter offer

Term
Counter Offer
Definition
Varies the terms of the original offer
Term
"Standard" Contracts
Definition

DO NOT EXIST

Used to assure and coax

Term
Headings
Definition

Meaningless

Each sentence is interactive with every other

Term
Recital
Definition
A preliminary statement in a contract explaining who the parties are, the background of the transaction, or showing particular facts why entering into contract
Term
Rider
Definition
Attached to an agreement for live performance
Term
Title
Definition

-Right to control and dispose of property

-The legal link between the person who owns the property and the property itself.

Term
Warranty
Definition
An express or implied promise that something is guaranteed
Term
Implied Warranties
Definition
Certain warrnanties are implied by law and need not be stated to be binding
Term
Disclaimer of Warrnaties
Definition

-Disclaimers of implied warrnaties must STAND OUT from the rest of the text

-Larger font, different color and/or set apart from the rest of the text

Term
Indmenity (aka, Hold Harmless)
Definition
A duty to make good any loss, damage, or liability incurred by another
Term
Condition
Definition
A future and uncertain event on which the existence or extent of an obligation or liability depends
Term
Condition Presedent
Definition
A trigger; something must happen BEFORE other obligations will arise
Term
Condition Subsequent
Definition
Something which will cause the contract to prematurely be brought to an end without liability of either party
Term
Covenant
Definition
A formal agreement or promise
Term
Covenant Not To Compete
Definition
Promise that one will not engage in competitive employment or conduct during or after a term of employment
Term
Most Favored Nations
Definition
Clause which states that the party promised this status will receive as good of a deal as anyone else
Term
Option
Definition
A privilege that one party may or may not choose to exercise
Term
Risk of Loss
Definition
Subject of contract may be destroyed, damaged, or die
Term
Severability Clause
Definition
States that if any part of the contract becomes invalid due to a change in the law, the rest of the contract will remain valid and enforceable
Term
Breach
Definition
Failure by a party to adhere to the promises set forth in the contract without justification or excuse
Term
Material Breach
Definition
A failure so severe that it threatens the value of the whole contract
Term
Immaterial Breach
Definition
Violation of an unimportant term or violates the contract ina minor way
Term
Anticipatory Breach
Definition
A party expressly and unequivocally states that it will not perform a contractual duty
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